The REFM outsourcing landscape: Insight from the front lines

The REFM outsourcing landscape: Insight from the front lines2016 Global Real Estate and Facilities Management (REFM) Outsourcing Pulse Survey Results

2© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. NDPPS 527556

REFM Pulse Survey team

Stan LepeakDirector, Global Research,KPMG LLP (U.S.)

Leads research efforts globally for KPMG’s Management Consulting service line, focused on trends, issues, and futures.

Patrice GillesManaging Director, SSOAKPMG LLP (U.S.)

Clients include organizations looking to assess service delivery across multiple areas and/or geographies of their support organizations.

Doug BurrDirector, REFM KPMG LLP (U.S.)

Strong background across the life cycle of REFM sourcing, strategy, and improvement program management experience.

Clinton FairbanksManager, REFMKPMG LLP (U.S.)

Know-how covers go-to-market strategy development, internal training and solutions development, supplier identification, transition and implementation, ongoing supplier governance, and transformation.

3© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. NDPPS 527556© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. NDPPS 527556

3

KPMG LLP’s (KPMG) Shared

Services and Outsourcing Advisory

practice recently surveyed service

providers and buyers to get a pulse

on the current state of REFM

outsourcing.

What we learned can help

differentiate your organization from

others.


We’re about transformationKPMG has the ability to help member firms’ clients transform enterprise services to help improve value, increase agility, and create sustainable business performance.

KPMG’s Shared Services and Outsourcing Advisory practice

The Shared Services and Outsourcing Advisory practice brings a specialized global team of more than 800 professionals within KPMG’s global network of independent member firms operating in 155 countries. Our professionals help clients design, build, and manage information technology (IT) and business processes across the enterprise.

Who we are

We help clients align their business strategy, organization, and execution to enable them to manage the entire IT and business process life cycle, improving business performance, and laying the groundwork for genuine business transformation.

What we do

We apply focused research, automating tools, proprietary data, clear business acumen, and a forward-thinking mindset to provide timely, objective, actionable advice and practical approaches for clients. KPMG’s Building, Construction & Real Estate (BC&RE) practice serves our clients’ needs across a broad spectrum of issues and geographies.

How we do it


The Global REFM Pulse Outsourcing SurveyAn annual review of real estate and facilities management outsourcing market trends and individual observations from the REFM “front lines.”

KPMG REFM Pulse Surveys

— End users actively pursuing or undertaking REFM outsourcing, “Buyers”

— REFM third-party advisors and outsourcing service providers, “SPA”

— More than 200 survey responses

— All major industries and geographies covered globally

Input sources:

— Current REFM outsourcing market trends and conditions

— Deal drivers, challenges, and service delivery models

— Global REFM sourcing trends

— REFM outsourcing deal attributes

Topics evaluated:

— Facilities management

— Facilities services

— Workplace services

— Portfolio strategy/planning

— Transactions/brokerage

— Lease administration

— Space management

— Project management

— REFM IT systems

Primary functional focus:

Focus on performance, trends, and futures


Discussion topics

— Respondent demographics— 2016 survey highlights and comparisons

Overview

— REFM Marco and market trends— Market characteristics— Buyer / SPA planned REFM outsourcing levels— Future REFM outsourcing demand levels— REFM demand by industry and process— Why some processes have not been outsourced

Market Trends

— Service delivery model preferences — Outsourcing deal pricing models and tenure— Challenges to successful consummation of REFM outsourcing efforts— Major drivers for REFM outsourcing— Means to better prepare for REFM outsourcing

Market Conditions

— Current pipeline growth and new deal pricing pressure— Provider focus— Contract profitability

Market and deal characteristics


REFM outsourcing respondents by geography and industry*

Respondents by industry

All OthersCPG, Foodand Beverage,Retail, Wholesale

Manufacturing Gov’t (Fed, State, Local),Education/ Non-profit

Real estate

Pharma/Biotech

Banking, Financial Services, Insurance

28%6%7%8% 8%15%17% 11%

Health-care

Respondents by geography

AsiaPacEMEAAmericasGlobal

26% 52% 13% 18%

Source: KPMG 2016 REFM Pulse Survey (Survey conducted August ~ September 2016)*Numbers might not add up to 100% due to rounding and multiple selections.


8

As we heard from people in the

field, several macro trends

came to the surface along with

insight into current REFM

trends.


When we compared responses from last year’s survey, here is what we found…

— Similar geographic distribution for the Americas and Global respondents, with an increase in participation from Asia Pacific

— Similar top demand of the top 3 industries as in prior years

— Similar to prior years, reduction in operational costs (OpEx) and improving process performance remains the top two outsourcing drivers

Increase of Buyers expectations of “Performance reporting and service levels” with their REFM reporting systems

Increase in interest by Buyersfor outsourcing over the next 3~4 quarters

8%

10%

Transaction services for Buyers currently outsourced18%

Increase in SPA’s stating a Buyer’s reason for not outsourcing is based on “No compelling business caseto change”

6%

Decrease of Buyers stating the reason for not outsourcing is based on activities being too strategic

18% Lower expectations by SPA’s on the length of contracts being 3~5 years. A drop of 7% by Buyers was also observed.

There are a few areas of similarity among respondents:

The standout areas include:

19%

Source: KPMG 2016 REFM Pulse Survey


Market overview: The top macro trends

1

2

3

4

5

Although there is some growing optimism, uncertain global economic conditions continue to weigh heavily on organizations’ decisions on how, where, and why they source services globally. Firms are pushing forward with global sourcing of services’ initiatives.

Global business services (GBS), combining onshore, nearshore, and offshore shared services and outsourcing, has become the predominant means through which organizations support global operations.

With many organizations’ GBS still remains fragmented across functions, geographies, and business units, complicating governance and detracting from potential business benefits. Defined efforts to drive GBS maturity is standard for experienced and sophisticated GBS users.

Commoditization of traditional generic and transactional outsourcing continues. Cloud and client maturity are major drivers for this, especially in IT. Buyers continue to seek more platform approaches tailored to specific industry, geographic, and regulatory needs.

There is a growing bifurcation between “leaders” and “laggards” in the service provider market based on industry and business process experience and diversity of services mix, including cloud and analytics.



Market overview: Current REFM outsourcing market trends

1

2

3

4

The REFM outsourcing market remains healthy which continues to grow. Firms continue to bundle REFM services under a smaller number of service providers, to operate under a coordinated model to further reduce costs, drive consistency, and improve governance, controls, and performance reporting. Leading firms are entering their 2nd and 3rd generation contracts.

Reducing costs continues to be the most common reason why organizations outsource REFM services. Service providers’ capabilities and service offerings continue to improve, with an increased focus on technology. Although most of the REFM services outsourced are tactical, however, there is a slight shift with more attention being placed on strategic.

Typical end-user organization expectations are that REFM outsourcing will improve their operational model, introduce leading practices, and drive continuous improvement. These expectations are often met, but when they are not, it is often because of the quality of the on-site service delivery team or not working effectively together with the client as one team.

Leading end-user organizations continue to increase their focus on REFM IT systems, reporting, and business intelligence, leveraging their IT systems to coordinate globally and using their data to support the organizations’ overall business goals. Leading services providers are increasing investments and capabilities with REFM IT systems.



12

An interesting

observation is that there

continues to be a

discrepancy between

REFM Buyers and

Service Providers when

asked about near future

outsourcing plans -

with buyers continuing

to be much more

optimistic than service

providers.


REFM market characteristics

1

2

3

4

There is a continuing trend among organizations outsourcing REFM services to bundle the management of these efforts and associated service provider relationships; buyers are continuing to cede control of higher-level service management functions to third-party providers in the form of more turnkey outsourcing efforts as they enter into 2nd and 3rd generation agreements.

There are a variety of topics high on organizations’ REFM agendas, including reducing cost, improving process performance, improving the workplace to attract talent, and improving sustainability. Reduction of costs remains the greater driver for outsourcing initiatives.

Buyers are pushing sourcing and coordinating new major REFM outsourcing efforts globally. However, many buyers continue to manage and coordinate both new and existing outsourcing efforts around geography, business unit, or functional area, due to internal organization and or service provider capabilities.

Buyers are placing greater focus on technology in REFM outsourcing deals. Buyers value lower cost, ease of administration and reporting functions. SPAs value efficiency brought by using systems they are familiar with and or developing in-house. Both groups value having a single source of data.



Future REFM outsourcing plans

Next 1-2 quarters Next 3-4 quarters 12+ months out

Buy

ers

SPA

65%

29%

6%

21%

64%

14%

42%

44%

14%

58%25%

17%

63%

37% 38%

50%

12%

Increased usage of outsourcing No change in usage of outsourcing Decreased usage of outsourcing

Source: KPMG 2016 REFM Pulse Survey*Numbers might not add up to 100% due to rounding and multiple selections.


In a business landscape where

organizations seek to differentiate

themselves, there were several

processes and industries that led in

demand for REFM outsourcing.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. NDPPS 527556

15


Buyers: Current and planned REFM outsourcing levels

9%

15%

13%

30%

38%

26%

36%

47%

59%

68%

15%

22%

37%

32%

40%

55%

45%

45%

35%

28%

2%

7%

2%

2%

2%

2%

4%

2%

4%

6%

2%

72%

59%

39%

36%

21%

11%

17%

9%

4%

2%

0% 20% 40% 60% 80% 100%

Portfolio Strategy/Planning

Space Management

REFM IT Systems and Reporting

Lease Administration

Major Project Management ($20M+/project)

Facilities Management

Project Management (<$20M/project)

Transactions/Brokerage

Facilities Services

Workplace Services

Currently fully outsource Currently partially outsource Planning to outsource in next 12 monthsPlanning to outsource 12+ months out No plans to outsource



What are the top industries driving REFM demand?

Source: KPMG 2016 REFM Pulse Survey*Numbers might not add up to 100% due to rounding and multiple selections** Other includes: 11% Telecommunications, 11% Bus Svcs/consulting, construction/engineering10% Automotive, 8% Transportation & Logistics, 8% Entertainment/media, hospitality/travel6% Chemicals, minerals/natural resources

32%

48%

44%

48% Banking, financial services, insurance

44% Healthcare

32% Pharma/biotech

24% Manufacturing

23% CPG, food and beverage, retail, wholesale

20% Real estate

18% Gov’t (fed, state, local) education/nonprofit

17% High-tech products and services

6% Energy/utilities, oil and gas

5% Aerospace/defense

Other**


When we look at areas of increasing demand by REFM process, three processes lead

+64%

+69%

+67%

Source: KPMG 2016 REFM Pulse Survey*Numbers might not add up to 100% due to rounding and multiple selections.* Facilities Management (Management of facilities services, workplace services and property management)* Facilities Services (Technical services including: HVAC, Electrical, Mechanical, Building Repair, etc.)* Workplace Services (Soft services including: Janitorial, Cafeteria, Amenities, etc.)

69% Facilities management *

67% Facilities services *

64% REFM IT systems and reporting

+55% Project management <$20M+/project)

+53% Workplace services *

+51% Lease administration

+40% Transactions/brokerage

+39% Major project management (>$20M+/project)


When it comes to REFM IT systems and reporting, buyers have indicated they are looking for…

46%

85%

74%

85% Performance reporting and service levels

74% Cost Data

46% Building, asset, and real estate information

37% Business intelligence (automated trend, forecast and data mining capabilities)

30% Business process and work flow management

30% Space planning

30% Project management

22% Lease administration

11% Transaction management



So why have some REFM processes not been outsourced?

Strategy, cost, and change.

41%37%

48% 48%41%

28%

17%

55%

33%

44%

Activities aretoo strategic

in nature

Costs wouldbe higher

No compelling business case

to change

Risks aretoo high

Satisfied with current service delivery model

Buy

ers

SPA

Buy

ers

SPA

Buy

ers

SPA

Buy

ers

SPA

Buy

ers

SPA



Service delivery model preferences are changing:

Data shows us that buyers continue to move toward a portfolio-based approach to manage their outsourcing efforts.

3.20 3.21 3.002.55 2.47

3.263.68 3.55

2.582.20

Bundle individually contracted

services, but retain high-level

management functions of

services

Bundle and outsource

increasing number of individually

contracted services

Bundle individually contracted

services and outsource key management functions of

services

Continue to manage multiple

services with individual contracts

Insource services currently provided

by service providers

Buy

ers

SPA

Buy

ers

SPA

Buy

ers

SPA

Buy

ers

SPA

Buy

ers

SPA

1.00 = Significant decrease in preference/demand, 5.00 = Significant increase in preference/demand



Outsourcing deal pricing models and tenure

We see that deal lengths tend to be shorter in the 3-5 year range in the REFM space compared to other functional areas of outsourcing.


70%

26%4%

65%

21%

14%

Buy

ers

SPA

Buy

ers

SPA B

uyer

s

SPA

Deal Tenure

3-5 years 1-2 years 5+ years


Outsourcing deal pricing models and tenure (cont’d)

Pricing Models

3.172.59

3.00 2.95

3.63

2.76

3.603.89

3.06 3.26 3.14 3.29 3.39

Buy

ers

SPA

Buy

ers

SPA

Performance based

contract

Management fee at risk

Management fee

incentives (bonuses)

Shared savings

Cost-plus contract

Fixed price contract

Guaranteedsavings

SPA

No

resp

onse

from

B

uyer

s

Buy

ers

SPA

Buy

ers

SPA

Buy

ers

SPA

Buy

ers

SPA

Buy

ers

SPA

1.00 = Significant decrease in preference/demand, 5.00 = Significant increase in preference/demand



24

Differences between Buyers and SPAs were not just limited to future plans. When we asked both sides about drivers and challenges, we saw differences, sometimes notable, in buyers’ and providers’ perceptions of challenges.


As always, there are drivers and challenges to REFM outsourcing efforts

Drivers

— Cost savings from outsourcing continues to be the main driver for most buyers and is the overwhelming driver from the SPA’s perspective.

— Once that standard is satisfied, end users are looking for more strategic benefits like improving global delivery capabilities, improving process performance and achieving economies of scale

— Buyers will use an outsourcing event to improve their operating model by centralizing management of REFM services, consolidating the number of service providers, and accessing process knowledge from those who can bring “off the shelf” playbooks to manage the work.

Challenges

— Buyers continue to cite that the quality and fit of service providers is the top challenge

— Costs savings and improvements in facilities management service levels are competing with improved space usage and portfolio strategy as top priorities.

— Service providers highlight inadequate management support and weak change management as top their top challenge.

— Providers have different styles and approaches to service delivery, and buyers are looking for a provider that “fits” their culture.

— Buyers also cite that enabling successful governance and transition efforts, and prioritizing competing agenda items are also key challenges for successful REFM outsourcing efforts


While reducing operating expenses remains the top driver, being strategic requires firms to go beyond cost alone.

REFM drivers

64%

40%

38%

34%

28%

79%

27%

13%

28%

17%

Reduce operating costs (OpEx)

Redirect resources to more strategic activities

Gain economics of scale

Support business growth/expansion agendas

Improve process performance

SPABUYERS



Buyers and service providers are not on the same page in many areas.

REFM challenges

Retained organization/transition/governance 31%

25%

31%

15%

60%

SPA

30%

45%

34%

21%

23% Inadequate executive/management support

Accounting for/managing the complexity of change efforts

Prioritizing opportunities and different change programs

Quality/fit of supporting service providers

BUYERS

nota

ble

disc

repa

ncie

s



How to better prepare for REFM outsourcing

SPABUYERS

36% 56%Better baseline costs

40% 41%Better alignment of strategies/plans

34% 40%Better governance structure

51% 30%Improved service level agreements

40% 39%Clarification of roles/responsibilities – in-scope, out-of-scope

40% 45%Working together as one team



So where are we today

when we look at pipeline

growth, pricing pressure,

and focus?


29


Advisors/service providers’ perspective on market deal characteristics

Pipeline growth expectations are similar to the results from last with the majority expecting growth, and with a substantial reduction in the number of providers seeing a reduced pipeline.

Pricing pressure from buyers on these deals is still high as over half of participants felt pricing is more competitive. Pressure is still tempered, to a degree, by buyer risk aversion to failed efforts and provider focus on maintaining their margins.

Pipeline growth Pricing pressure

Providers continue to focus on growing business and expanding scope in existing accounts as a means to gain higher margin business. This reflects continued consolidation occurring in the REFM market.

Overall, contract profitability is in a slight decline while pricing pressure and continued substantial growth expectations are higher. It is still a generally good market for service providers.

Provider focus



31

KPMG can helpTake advantage of our

knowledge and resources

and join the conversation

For more information,

contact Patrice Gilles at

214-498-1553 or

[email protected]

Access the recent REFM

Outsourcing Pulse Survey

Webcast replay.

https://www.kpmg-institutes.com/institutes/advisory-institute/events/2017/01/2016-refm-outsourcing-pulse-survey-results.html


Want to know more? Access KPMG’s sourcing advisory research

KPMG Shared Services and Outsourcing Institute

KPMG Shared Services and Outsourcing Advisory Pulse Surveys

KPMG Commercial Real Estate Survey and Real Estate Industry

Global Business Services (GBS)

KPMG Institutes Home

Blog: Reality Check

Podcasts: Advice Worth Keeping

Process Automation: KPMG Cognitive Automation

Global Thought Leadership KPMG Anticipate

http://www.kpmg-institutes.com/institutes/shared-services-outsourcing-institute.html

http://www.kpmg-institutes.com/institutes/shared-services-outsourcing-institute/articles/campaigns/ssoa-pulse-surveys.html

http://www.kpmg.com/US/en/topics/2013-outlook-surveys/Pages/2013-real-estate-outlook-survey.aspx

http://www.kpmg.com/US/en/industry/building-construction-real-estate/Pages/Default.aspx

http://www.kpmg.com/us/GBS

http://www.kpmg-institutes.com/institutes/advisory-institute.html

https://advisory.kpmg.us/blog.html

http://www.kpmg-institutes.com/institutes/shared-services-outsourcing-institute/events/podcast-series/advice-worth-keeping-podcast-series.html

http://www.kpmg.com/us/cognitiveautomation

https://home.kpmg.com/xx/en/home/insights/2016/05/kpmg-anticipate.html


© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services.No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved. NDPPS 527556 33

Webcast participant resumes

33


Stan LepeakDirector & Head, Research & Thought Leadership, Global Management Consulting

KPMG LLPNew York, NYTel +1 203 444 [email protected]@gmail.com

Function and specializationLeads research & thought leadership efforts for KPMG Global Management Consulting, focused on trends, issues and futures in enterprise services transformation and optimization, the threats and opportunities from market disruptions and disruptive technologies and best practices in responding to and capitalizing on these market trends. Former Managing Director, EquaTerra Global Research (acquired by KPMG, February, 2011).

Blog: https://advisory.kpmg.us/blog.html LinkkedIn:

https://www.linkedin.com/in/stanlepeak Twitter: http://www.twitter.com/eqspnews

Role

Stan leads market research and thought leadership efforts for KPMG Global Management Consulting, focused on trends, issues and futures in enterprise services transformation and optimization, the threats and opportunities from market and technology disruptions and best practices in responding to and capitalizing on these market trends

Areas of focus expertise

• The tactical and strategic organizational opportunities, challenges and ramifications from

− Technology disrupters and enablers such as cloud, big data and analytics, mobile, Internet of things, social media, consumerization of IT, and robotics process automation

− Business disrupters such as globalization, increased regulatory and compliance complexity, talent and skills shortages, shifting global economic and competitive dynamics and geopolitical risks

• Global business services usage and models including shared services, process outsourcing and automation, and cloud and their leading practices and maturity models across major back (F&A, HR, IT, procurement, supply chain), middle and front office functions

• Use of data and analytics, process automation and related technologies to create and exploit “intelligent” business functions to enable organizational innovation and transformation

• Vertical industry and geographic trends and variations relative disruptive market trends and technologies and their impact on enterprise transformation and innovation efforts

Professional experience

• 30 years experience in the business and IT services markets. Led global research for leading boutique sourcing advisory firm EquaTerra (acquired by KPMG in 2011) for seven years. Previous to that worked for the META Group (acquired by Gartner in 2004) as VP and Research Director. He has had executive roles on the vendor and provider side in software and services industries as well as positions in finance, accounting and operations across several industries.

• Noted commentator and frequent speaker on global business services and globalization and business and IT enablers and disrupters.

Stan Lepeak, Director and Head, Research and Thought Leadership, KPNMG Management Consulting

mailto:[email protected]


https://advisory.kpmg.us/blog.html

https://www.linkedin.com/in/stanlepeak


Patrice Gilles, Managing Director, REFM

KPMG LLP717 North Harwood StreetSuite 3100Dallas, TX 75201

Tel 214 840 6978Cell 214 498 [email protected]

Representative Clients

— BC Hydro— Hydro One— JPMC— Sajo— Colgate— Verizon— CGI— Schlumberger— Unilever— Nestle— Chiquita— Walgreens— UBS— Novartis

Languages

— English, French

Education, Licenses & Certifications

License in Business Administration (Major in International Affarirs) from Hautes Etudes Commerciales (HEC)

Professional and Industry Experience:

Patrice is a Managing Director in KPMG’s Advisory Services practice with more than 25 years of international and domestic management advisory and business experience in Real Estate and Facilities, supply chain, source-to-settle and legal processes. Patrice holds responsibility for service delivery to clients as well as business development in the Business and Financial Processes practice. She leads the Real Estate and Facilities Management and the Procurement Practices. Patrice’s clients typically include those organizations looking to assess service delivery across multiple areas and/or geographies of their support organizations.

Representative experience includes the following:

— Patrice led the advisory team who evaluated and assisted in the definition of the solution as well as transition assistance at Verizon Communication.

— Patrice lead the team who to conduct an assessment of a global manufacturing global corporate facilities leading to an outsourcing decision

— Patrice lead the team who to conduct an assessment of a major US banking organization global corporate facilities as well as the solution and transition support.

— Patrice led the advisory team who negotiated the outsourcing contract extension with Accenture for the Finance, HR, Customer Care towers at BC Hydro. For the Facilities Management tower, Patrice led the assessment and ultimately the solution recommendation saving an estimated 20% savings and leading to service quality improvement. She also led the RFP development, service provider evaluations and negotiations of the IT tower.

— For The Cleveland Clinic, Patrice lead the team to conduct an assessment of their corporate and medical facilities as well as preparing as the review of their current outsourcing contracts.

— Patrice participated in the team who assisted GSK in their outsourcing efforts of their Facilities Management.

— Patrice Led the advisory team that assisted Unilever in the outsourcing of its global S2P (Source to Pay) which included Facilities Management spend to IBM. The effort covered all regions – North America, Latin America, Asia Pacific and the IT organization

— Patrice led the team that assisted Nestle in their shared services efforts for procurement saving an estimated $100 million.



Professional and industry experience

Doug is an experienced advisor in KPMG’s Real Estate & Facilities Management (REFM) Outsourcing practice and has more than 15 years of outsourcing and consulting experience. He has a strong background across the life cycle of REFM sourcing, strategy, and improvement program management experience. Doug’s current and past clients include some of the leading entities in the financial services, pharmaceutical, technology, and manufacturing industries.


— Advising clients on offering over $2.0 billion of contract value in REFM services to the service provider market:

- Two leading pharmaceutical companies with annual contract value each over US$100 million

- Two leading telecommunications companies with annual contract value of US$60 million and US$80 million

- Other leading technology, manufacturing, and consumer packaged goods companies

— As a LEED AP, Doug advises on methods to incorporate environmental sustainability into corporate real estate outsourcing agreements.

— Currently he is advising a large hydroelectric electricity provider on facilities management outsourcing

Doug Burr, Director, REFM

Doug BurrDirector, Real Estate & Facilities Management, Sourcing Advisory

KPMG LLPSan Francisco, CA

Tel 925 895 4747 Fax 415-704-3285Cell [email protected]



Professional and industry experience

Clinton has over 15 years of outsourcing and advisory experience for client initiatives in the Americas, EMEA, and APAC. Experience in leading Real Estate & Facilities Management outsourcing initiatives for global enterprises including pharmaceutical, healthcare, airline, and financial. Know-how covers Go-to-Market strategy development, internal training and solutions development, supplier identification support, transition and implementation, ongoing supplier governance and transformation.


Experience focuses on the financial and pharmaceutical industries for REFM with an understanding of complex internal and external regulations, critical facilities including GMP, organizational change, and risk mitigation.

— Served as the primary advisor and project manager for a 5-country European FM outsourcing initiative for a pharmaceutical client. The project included alignment on the Go-to-Market strategy, RFP development, contract development, RFP administration, and supplier selection. Implemented an organizational/operational transformation initiative to take the client from a task-based to a collaborative performance-based culture.

— Served as head of Transition and Transformation for extensive FM operations in Japan, Korea, and Australia for a global financial firm. The project included validation of client baseline budgets, recruitment, and transitioning of staff and operations to the new integrated facility management supplier. A progressive approach from this project implemented on initiatives with other clients include standardized transition and training process for both supplier and client transition team members for another financial firm for operations in APAC and the Middle East, covering 25 countries.

— Directed a FORTUNE 500 pharmaceutical organization through a thorough and advanced outsourcing initiative, yielding ~20 percent in savings.

— Guided a leading IT manufacturer through the strategic planning and execution of a $120 million FM sourcing initiative. The project covered North American manufacturing and nonmanufacturing facilities and achieved 16 percent in savings. Recognized by client and suppliers as having successfully transformed client’s mind-set in a short time frame.

Clinton Fairbanks, Manager, REFM

Clinton FairbanksManager, Real Estate & Facilities Management, Sourcing Advisory

KPMG LLP15 W. South Temple, Suite 1500 Salt Lake City, UT 84101

Tel 801-237-1410Fax 801-469-4913Cell [email protected]

Function and specializationIntegrated Facilities Management project management and transition expertise.

Education, licenses & certificationsMBA, Gore School of Business BA, Japanese, University of Utah

LanguagesEnglish, Japanese



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The REFM outsourcing landscape: Insight from the front lines

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Transcript of The REFM outsourcing landscape: Insight from the front lines