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Gill Blog

Tuesday, December 09, 2003

Real Estate Outsourcing

So, your organization has decided it should spread its real estate assets and operations around several locations - or has decided that contraction plays an important role in the real estate strategy. Can this reshuffling of the deck occur in a cost-effective manner? According to this article from Working Knowledge at the Harvard Business School, it can through real estate outsourcing, as shown in a case study involving GMAC.

By choosing to outsource this strategic function to an outside party, an organization can significantly reduce costs. Of course, the decision to undertake an outsourcing program can come at a cost as well, and this requires expertise in change management, a challenge the organization must be able to tackle head-on. In essence, it becomes an exercise that potentially fuses real estate strategy, outsourcing, change managment and business continuity planning - a fusion that Gill Advisors advocate.

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