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Greater Participation of Public Sector in Integrated Facilities Management to Promote Market Expansion

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Greater Participation of Public Sector in Integrated Facilities Management to Promote Market Expansion

Mumbai, Maharashtra, India

Rigid labour laws in countries such as Italy and France are acting as a barrier against outsourcing facilities management. As a result, the public sector is likely to rely on its own employees for facilities management. However, in recent times, both the private and, to a lesser extent, the public sector have gradually realised that integrated facilities management (I-FM) can result in significant cost savings in terms of reduced need for in-house I-FM personnel.

Frost & Sullivan ( finds that the Southern Europe Integrated Facilities Management Markets earned revenues of $ 1.2 billion in 2004 and estimates this to reach $2.7 billion in 2011.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Southern Europe Integrated Facilities Management Markets, send an e-mail to Ravinder Kaur - Corporate Communications at with your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information through email upon receipt of the above information

"Greater involvement of the public sector in I-FM initiatives, particularly from the health sector, local administrations and the army are indicators of potential growth in the market," notes Frost & Sullivan Research Analyst Mireille Pierrevelcin. "The recent participation of new international entrants in the Spanish and Italian I-FM markets also promises to expand the market."

Hospitals are becoming the largest representatives of the public sector. Here, the focus on I-FM projects includes support services (such as cleaning, catering, reception and security) and maintenance. The main reason for the increase in I-FM initiatives in the health sector can be attributed to the efficiency of services offered by I-FM service providers.

The evolution of I-FM depends greatly on this transition from in-house to outsourced management. Presently, the market, comprising few domestic I-FM companies particularly in France and Spain, and a majority of international participants in Italy, is still in the embryonic stage.

Due to increasing competition in certain regions such as Italy, I-FM companies are being compelled to reduce prices to attract clients and gain a competitive advantage.

"This strategy can be worthwhile only until clients gain awareness of the I-FM concept", states Ms. Pierrevelcin. "I-FM specialists implementing price reduction will not be able to generate profits and this is likely to spiral into financial difficulties in the future."

Instead, I-FM participants should focus their strategies on marketing their service offerings to create demand among potential clients. Promoting the advantages of a single provider for all I-FM services will prove beneficial. This is crucial since currently, awareness of the I-FM concept and its advantages remains low. Moreover, it will become essential to meet the needs of customers in terms of quality service delivery and possess good track records with favourable references in order to remain competitive.

Southern Europe Integrated Facilities Management Markets is part of the Building Management Technologies Subscription, which also includes research in the following markets: European I-FM Service Market, European I-FM end-user analysis, Northern European Integrated Facility Management Market, Total European Integrated Facility Management Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit

Southern Europe Integrated Facilities Management Markets

Ravinder Kaur, Corporate Communications - South Asia & Middle East, Frost & Sullivan, + 91 (044) 4204 4515

Source: Frost & Sullivan (Business Wire India)

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