Remit Consulting - Will UK Real Estate Move Offshore?

Outsourcing in Real Estate is about to change
- but not by going offshore.

We've had some excellent feedback from our survey. Over the last month we have been talking to participants on a one-to-one basis about how their results in terms of strategic objectives, KPIs and staff numbers measure up to those of their peer group.

If we haven't talked to you yet, don't worry, one of us will be in contact shortly. We have a fair few to get through! Please feel free to contact Melita if feedback sooner rather than later would be helpful.

These discussions, together with the research have given some real food for thought:

	The underlying theme of the results is not offshoring, but effective outsourcing.
	There is pressure on all sectors, but particularly Property Managers and Corporates, to cut costs and demonstrate efficiency;
	Offshoring has already been adopted by about 13% of our sample to a greater or lesser degree. It is not possible to predict whether it will take off from the currently available data, but significant changes to how property services are provided are likely.
	The current fragmentation of property management across many players in the industry makes it difficult to achieve the economies of scale necessary to make offshoring a viable strategy for most companies; However, this does not mean that the option should be dismissed - it is precipitating greater change.
	The shadow of further regulation, either voluntarily through the RICS or by the FSA, has not receded and with the pre-budget announcement that REITs will go ahead, the burden of regulation is likely to increase.

Regardless of whether you think offshoring or even outsourcing is a viable option for your business the risks and opportunities are clear:

	This is not a "one size fits all" solution - part of your current business may already be under threat from new market entrants. How can you profit in a market where you provide fewer services?
	Companies with the most efficient business processes will reduce their costs and be flexible enough to benefit from new initiatives, whether onshore or offshore.
	It is possible to benchmark your processes against industry leading practice
	The best route for your business may be increased automation rather than outsourcing/offshoring but better automation will allow greater choice.

We have developed a model to show which improvements your business may be able to take advantage of. If you did not take part in the survey but would like a hard or soft copy of the report see the links on the right.

If you would like us to visit you to present the research in detail, please contact us.