Co-sourcing expertise on demand can drive change and savings: going beyond outsourcing, co-sourcing augments a company's internal staff with external resources with broader industry knowledge and trends--a practice gaining favor in the real-estate industry.

AuthorMundhal, Mark
PositionMANAGEMENT

Focusing on sustainability has become a popular strategy for companies seeking to enhance their public image. Given the rising costs of energy and the corresponding environmental impacts, cutting energy costs provides for a positive, feel-good story, ready-made for the media and consumers. But are good public relations enough to prompt a business toward adopting sustainability measures?

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As with any initiative, a corporate sustainability program is only worthwhile if it is financially viable. The good news is that it most often is. If you look at the leaders in the sustainability movement as defined by Corporate Knight's Global 100--leaders such as General Electric Co., Procter & Gamble Co. and Unilever--it is unlikely that they are pursuing such improvements out of some elevated sense of benevolence.

Most likely, these companies are moving toward sound financial stewardship on behalf of their owners and shareholders. Improving energy efficiency simply makes good business sense. But although certain sustainability measures can provide significant savings, knowing how to initiate such measures is a different story.

In today's environment of shrinking budgets and diminishing resources, companies often find sustainability improvements to be daunting and intimidating. If reducing energy costs is not already part of a company's core business strategy, many are quick to dismiss such recommendations as too risky or unachievable. It is in this context that co-sourcing can provide a valuable solution.

The Case for Co-sourcing

Until recently, business leaders have had to rely on their real estate and facilities management teams to come up with sustainability solutions. Since these teams usually don't possess the latest knowledge in sustainability expertise, companies often find themselves either reinventing the wheel or missing various savings opportunities.

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Even in the case that proper sustainability measures are being pursued, it is not uncommon for companies to experience resistance to change, particularly among long-term employees. This can often lead to a prolonged implementation where the company finds itself stuck in limbo.

In a co-sourcing relationship, the necessary expertise and orientation toward action is part of the package. Co-sourcing creates a collaborative partnership in which industry experts work alongside existing facilities management teams to bring about change and keep the company...

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