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A paradigm shift is occurring within outsourcing procurement and corporate real estate (CRE), and at the heart is an increasing focus on outcomes. There is an increased realisation that both outsourcers and service providers will achieve mutual success if the business relationship is structured as a partnership. In procurement parlance, this is Vested Outsourcing. Here are six key reasons why Vested outsourcing should be considered for your next corporate real estate outsourcing model. Vested Outsourcing IT’S TIME TO TRANSFORM OUTSOURCING

1. Building a high-performance business relationship focused on partnering. The foundation of Vested outsourcing is structuring the business relationship as a partnership – both parties have an equal standing. Not only does this reduce potential sources of conflict, but allows both parties to focus on what is truly important. Time is invested in delivering outcomes aligned with the client’s corporate strategy, rather than meeting arbitrary metrics that may not necessarily lead to a better solution for the client. 2. A flexible approach leads to flexible solutions. All outsourcing requirements are subtly different. Adopting a Vested approach allows for greater exploration of problems and solutions prior to defining tasks and outcomes, and so avoids a textbook approach. The model therefore is one of flexibility, not rigidity. 3. Driving innovation solutions through partnerships and flexibility. It is this flexibility that drives innovation as an environment of constant improvement is created. As a result, the service provider relationship shifts from “what can we do for you?” to “what can we do better together?” Once an outcome is achieved, the focus can shift to the next, higher level outcome and then the next and so on. Both parties are working together to develop industry leading solutions. 4. Ready for the long-haul: A foundation for a long-term relationship. The whole outsourcing procurement process is likely to take longer as both parties take

the time to get to know and understand each other. Time is needed to develop innovative solutions, they are not created overnight. However, this is a key facet of Vested outsourcing. Both parties are on a common journey, underpinned by shared values and goals. Ultimately, this leads to a longer-lasting relationship, reducing, or even removing, the need to retender. Both parties then benefit simultaneously from reduced costs and greater stability. 5. Sharing probability: All for one. The sharp focus on outcomes, and not metrics, ensure that the outsourcer’s most significant issues are addressed. The key is to identify and set outcomes that matter. The service provider benefits from this relationship too. Aside from financial remuneration, the service provider is working to develop industry-leading solutions to benefit the client, which also can be applied elsewhere. The flexibility not seen in traditional procurement approaches helps to ensure the operating model and commercial framework are optimal for both parties and are the source of securing much greater outcomes. 6. Shared values in a sharing economy. Adopting a Vested outsourcing approach is essentially a means for a first generation outsource contract to reach a third generation relationship without enduring the pain and costs normally associated. In a world increasingly characterised by the sharing economy, it makes sense for all business relationships to be based on shared values, culture, and objectives.

Delivering the Next Generation of Energy Intelligence Cushman & Wakefield is proud to partner with Lucid's industry leading building intelligence software BuildingOS to provide flexible and scalable value-added services to our clients.

DR. DOMINIC BROWN Head of Research, Australia and New Zealand dominic.brown@cushwake.com ROBERT KEMENY Head of Transition and Facility Management SME, Business Operations Support Services robert.kemeny@cushwake.com

BEN TRACEY Director Enterprise Solutions ben.tracey@cushwake.com

PHIL HANCOCK Operations Manager phil.hancock@cushwake.com

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