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Outsourcing has been the buzz word for some years in the property industry with great debate about the likely merits or otherwise of whether it should be undertaken. Some organizations, including major banks with the exception of Westpac, have opted to outsource their facility/leasehold requirements. Facility management outsourcing seems to be widely accepted, while property management sevices has always been considered by most organizations, unless in-house managed.

CB Richard Ellis recently had a case where ING office and Industrial Trust outsourced its facility/leasehold requirements in one line and on limited notice. This was one of the largest private outsourcing in management in Australia's history incorporating only freehold property.

Some criteria of outsourcing include: the agency understanding the client's needs; questioning whether it provides value for money; standardization of reporting on a national/global/local basis; serviceability of the agency needs: single point reporting; strength of client to organization; technology advantages; and superior financial accounting. In reviewing these requirements, large companies found that in almost every case there was a positive advantage to be had by the client where a designated group of property managers around the country reported to the asset managers or clients.

Outsourcing isn't for everyone but firms that choose it achieve strong links with the outsourcer who is almost seen as an extension to their own organization, providing a client organization with specialized extension of contractor services.