FACILITY MANAGEMENT
Sarvesh Group one of service of facility management system of continuous improvement in quality, technology, processes company culture productivity, safety and leadership. Sarvesh group strategy calls for never ending improvement involving everyone in the organization.
Sarvesh Group services are a progressive Facility Management company. These services started by company one of the director Mr. Sanjay Parab and having good experience in their respective field.
FACILITY MANAGEMENT MARKET IN INDIA
INTRODUCTION
Facility Management (FM) service imply the use of a third-party service provider to maintain part of the building facility or outsourcing the management of entire facilities
To an organization that executes this service professionally. It includes hard services or building operation and maintenance and soft services or support services, and energy management services.
Hard service includes electrical, electro-mechanical; water management and energy management. Soft services include housekeeping, security, cleaning, catering, transportation, horticulture, landscaping, and front office management, etc. In developed markets, FM services are closely integrated with other services such as rent collection and lease management. However, in India, the concept of FM has not matured enough to provide complete property management solutions. Increase in investments in IT/ITeS/BPO, finance/banking, telecom, retail/malls, and industrial sectors will continue to witness strong growth in the next 2-3 years and due to the expected influx of major global Multinational Companies (MNC) in India across various end-user verticals.
The Indian Market vis-à-vis the Global Scenario
The Indian FM services market is in its early growth stage and is evolving rapidly, fuelled mainly by the high pace of growth in the construction sector. Increase awareness levels among different vertical markets are expected to take this market to a mature growth phase in its life cycle.
The market for outsourced FM service in India was estimated to be USD 650 million in 010. Due to the size of the construction market and geographic space, the FM market revenues in India are higher than other nations such as Singapore that are smallerin geography. But, in terms of market maturity and understanding and accepting of such services by end users, India has a long way to go.
Industry Challenges
Lack of availability of technical and non-technical manpower is one of the biggest challenges the industry is facing currently. The lack of qualified staff has increased the lead times in mobilizing resources/staff after a project has been successfully contracted. Increase in inflation and labour cost have forced many customers to replace long-term contracts with medium-term ones. Many customers find it easier to maintain medium and short-term contracts rather than long- term ones as the latter will lead to price rise.
The next big factor posing as a deterrent is competition. Since the market is riddled with low cost unorganized service providers, pricing and margins come under pressure as these unorganized players provide service at low rates, essentially scuttling the competition from large organized players. However, many international property management companies have entered into this market and achieved phenomenal growth rates over the last five years. As the construction sector is witnessing anincrease in investments across vertical markets, this sector is expected to witness more competition from new entrants, majorly from the US and in the future.
Joint Ventures (JV) are being viewed as a disincentive factor, due to high entry barriers. JVs would make it easier for the market players to provide easy access to the customer network, increase manpower strength, widen their service portfolio and expand their geographic footprints to increase brand visibility. Very few new or existing FM companies are looking at entering or expanding into this market by partnering or acquiring a local company.
GROWTH OPPORTUNITIES
The outlook of FM services in India is shaping up to be highly optimistic mainly due to the growing maturity of end users and the need for improved safely, comfort and professional maintenance of assets.
FACILITY MANAGEMENT
Sarvesh Group one of service of facility management system of continuous improvement in quality, technology, processes company culture productivity, safety and leadership. Sarvesh group strategy calls for never ending improvement involving everyone in the organization.
Sarvesh Group services are a progressive Facility Management company. These services started by company one of the director Mr. Sanjay Parab and having good experience in their respective field.
FACILITY MANAGEMENT MARKET IN INDIA
INTRODUCTION
Facility Management (FM) service imply the use of a third-party service provider to maintain part of the building facility or outsourcing the management of entire facilities
To an organization that executes this service professionally. It includes hard services or building operation and maintenance and soft services or support services, and energy management services.
Hard service includes electrical, electro-mechanical; water management and energy management. Soft services include housekeeping, security, cleaning, catering, transportation, horticulture, landscaping, and front office management, etc. In developed markets, FM services are closely integrated with other services such as rent collection and lease management. However, in India, the concept of FM has not matured enough to provide complete property management solutions. Increase in investments in IT/ITeS/BPO, finance/banking, telecom, retail/malls, and industrial sectors will continue to witness strong growth in the next 2-3 years and due to the expected influx of major global Multinational Companies (MNC) in India across various end-user verticals.
The Indian Market vis-à-vis the Global Scenario
The Indian FM services market is in its early growth stage and is evolving rapidly, fuelled mainly by the high pace of growth in the construction sector. Increase awareness levels among different vertical markets are expected to take this market to a mature growth phase in its life cycle.
The market for outsourced FM service in India was estimated to be USD 650 million in 010. Due to the size of the construction market and geographic space, the FM market revenues in India are higher than other nations such as Singapore that are smallerin geography. But, in terms of market maturity and understanding and accepting of such services by end users, India has a long way to go.
Industry Challenges
Lack of availability of technical and non-technical manpower is one of the biggest challenges the industry is facing currently. The lack of qualified staff has increased the lead times in mobilizing resources/staff after a project has been successfully contracted. Increase in inflation and labour cost have forced many customers to replace long-term contracts with medium-term ones. Many customers find it easier to maintain medium and short-term contracts rather than long- term ones as the latter will lead to price rise.
The next big factor posing as a deterrent is competition. Since the market is riddled with low cost unorganized service providers, pricing and margins come under pressure as these unorganized players provide service at low rates, essentially scuttling the competition from large organized players. However, many international property management companies have entered into this market and achieved phenomenal growth rates over the last five years. As the construction sector is witnessing anincrease in investments across vertical markets, this sector is expected to witness more competition from new entrants, majorly from the US and in the future.
Joint Ventures (JV) are being viewed as a disincentive factor, due to high entry barriers. JVs would make it easier for the market players to provide easy access to the customer network, increase manpower strength, widen their service portfolio and expand their geographic footprints to increase brand visibility. Very few new or existing FM companies are looking at entering or expanding into this market by partnering or acquiring a local company.
GROWTH OPPORTUNITIES
The outlook of FM services in India is shaping up to be highly optimistic mainly due to the growing maturity of end users and the need for improved safely, comfort and professional maintenance of assets.
Presence