Outsourcing of property-related management functions in Europe and North America, 1993-1998

The annual survey of corporate real estate practices in Europe and North America conducted by the Corporate Real Estate Management Research Unit at the University of Reading and Johnson Controls Incorporated includes information on outsourcing trends of several property-related management functions-design, construction, facilities, and maintenance management. The visual inspection of responses would suggest a gradual trend away from outsourcing, but the statistical tests indicate a significant increase only in in-house construction management function, and only for the period between 1993 and 1994. There are no significant trends in any of the four functions for the remaining period through 1998. However, the survey shows also that these management functions are interrelated. That is, when an organization undertakes one of these functions it is likely that they will perform the others in-house as well. Finally, the shift towards in-house construction management seems to reflect a wider trend away from outsourcing.