Government outsourcing: overcoming the negative connotation

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Partnering with an outside provider of facilities management can have its hurdles, but with the right partner selection agencies at all government levels can minimize operational costs and enhance service quality, while successfully navigating political agendas and public scrutiny.

Visit http://bit.ly/govt-real-estate-solutions to download the full paper: The intersection between politics and real estate.

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Government outsourcing: overcoming the negative connotation

  1. 1. The intersection of politics and real estate
  2. 2. 1July 26, 2014 Benefits to partnering • Lower operating costs • Lower risks for the public sector entity • Increased focus on core talents • Higher quality results • Better data collection and analysis • Smarter and more strategic decision making Why government organizations should partner with a third party firm
  3. 3. 2July 26, 2014 Challenges • Public scrutiny • Overcoming the negative connotation surrounding outsourcing • Balancing the amount of information disclosed to the public • Addressing concerns of existing government employees, including union members The hurdles to overcome when choosing to partner with a third party
  4. 4. 3July 26, 2014 • Provide a high degree of transparency and communication to the public • Educate the press and public on the project initiatives • Manage profit expectations • Select a real estate partner based on merit and experience • Partner with ethical service providers who have a track record of corporate social responsibility Solutions for overcoming public perception issues
  5. 5. 4July 26, 2014 Solutions for overcoming job loss concerns • Assess each individual situation to determine a tailored approach • Analyze current talent and determine any existing gaps that should be supplemented • Engage in talent discussions early to avoid automatic layoffs during the outsourcing process • Understand that the relationship between outsourcing and unions is not a binary decision; hybrid models with union talent can work well
  6. 6. 5July 26, 2014 Beyond cost containment Engaging private-sector firms in outsourcing facility management and advising on real estate projects is too big an opportunity to miss. Outsourcing real estate management and leasing functions: • Frees up capital for other uses • Shares the best strategies learned in the corporate world • Instills private sector efficiency into the government One elected official noted: “I don’t care who runs my real estate portfolio if it enables me to potentially put tens of million of extra dollars into education.”
  7. 7. COPYRIGHT © JONES LANG LASALLE IP, INC. 2014 Engage a knowledgeable expert Jeremy Becker: Jeremy.Becker@am.jll.com Want to learn more about navigating politics and real estate? >> Click here to read the full paper Thank you

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