Outsourced: Operators face rising competition from the software sector and offshore companies

The Facilities Management and Other Office Administrative Services industry has benefited from rising demand for outsourced services over the past five years, as downstream markets have increasingly accepted cost reduction benefits of outsourcing non-core functions. The industry comprises small businesses that service narrow regional markets. However, larger industry players have become increasingly prominent as many companies have increased their scale in line with rising customer acceptance. A rise in the number of office towers and other business hubs has increased the market for facilities management and other industry services over the period.Industry revenue is expected to grow at an annualised 3.4% over the five years through 2019-20, to $14.4 billion...read more.

Industry Statistics & Market Size
Revenue
$14bn
Annual Growth 15-20
3.4%
Forecast Growth 20-25
Profit
Employment
103,911
Businesses
11,153

Industry Threats & Opportunities

  • Downstream markets have increasingly accepted the cost benefits of outsourcing non-core functions
  • More businesses have been outsourcing non-core activities to specialised industry service providers
  • Demand for low-skilled services is likely to fall due to competition from offshore outsourcing firms
  • Industry Report - Industry Key Buyers Chapter

    The Facilities Management and Other Office Administrative Services industry is characterised by low market share concentration, as the four largest players are estimated to account for less than 40% of industry revenue. The industry mainly comprises small operators that specialise in outsourcing a specific function or manage a handful of buildings as part of their customer portfolio. This is particularly evident among billing and payroll service providers. This segment tends to attract sole proprietors that service a niche market of small- and medium-sized clients. The growth in customised software solutions has made it possible for smaller organisations to service much larger clients, particularly in business administration and clerical services...purchase to read more.

    Additional Insights for the Facilities Management and Other Office Administrative Services Industry

    IBISWorld has determined the most important Key Success Factors for the Facilities Management and Other Office Administrative Services are:

  • Access to the latest available and most efficiency technology and techniques
  • Well developed internal processes
  • Having a loyal customer base
  • IBISWorld analysts also discuss how external factors such as Number of businesses and Demand from business process outsourcing in Australia in the Facilities Management and Other Office Administrative Services industry impact industry performance..

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    What's in this report

    What is the Facilities Management and Other Office Administrative Services Industry?

    Companies in this industry arrange a variety of upkeep services relating to a defined building, structure or space, typically over a fixed term. Firms must manage more than one upkeep function to be considered as part of the industry. Activities include maintenance, cleaning, catering and waste management services. The industry also includes outsourced payroll services and business administrative functions.

    Industry Products
  • Billing and record keeping
  • Facilities management
  • Payroll processing
  • Administrative services
  • Industry Activities
  • Facilities management services
  • Billing and record keeping services
  • Payroll processing services
  • Clerical services
  • Reception services
  • Business administrative services
  • Other office administrative services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of businesses
  • Demand from business process outsourcing in Australia
  • Business confidence index
  • Total employees in the labour force

  • Current Performance
  • Increased outsourcing
  • Facilities management
  • Demand industries
  • Industry profit and participation
  • Chart: Revenue Growth

  • Industry Outlook
  • Outsourcing continues
  • Service innovation
  • Profit and employment
  • Table: Facilities Management and Other Office Administrative Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Facilities Management and Other Office Administrative Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Manufacturing
  • Financial and Insurance Services
  • Defence
  • Professional Services

  • Key Selling Industries
  • Computer and Software Retailing
  • Internet Service Providers
  • Legal Services

  • Products & Services
  • Facilities management
  • Administrative services
  • Payroll processing
  • Billing and record keeping
  • Chart: Facilities Management and Other Office Administrative Services Industry Products and Services Segmentation

  • Demand Determinants
  • Cost savings
  • Increasing complexity
  • Technology and expertise

  • Major Markets
  • Government and defence industries
  • Other industries
  • Commercial industries
  • Healthcare industries
  • Mining industries
  • Manufacturing industries
  • Chart: Major Market Segmentation for the Facilities Management and Other Office Administrative Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Facilities Management and Other Office Administrative Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Facilities Management and Other Office Administrative Services Industry

  • Industry Globalization
    Spotless Group Holdings Limited, Ferrovial Services Australia Pty Ltd,
  • Table: Spotless Group Holdings Limited - financial performance
  • Table: Ferrovial Services Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Facilities Management and Other Office Administrative Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Facilities Management and Other Office Administrative Services Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bespoke Software
  • Software solutions that are explicitly tailor-made to suit a company's needs and requirements.
  • Computerised Maintenance Management System (Cmms)
  • A computer-based system, typically a software package, which uses data to inform maintenance operation decisions, such as scheduling and storage.
  • Myob
  • Mind Your Own Business is an Australian supplier of tax and accounting software and solutions for small- to medium-size businesses.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Facilities Management and Other Office Administrative Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Facilities Management and Other Office Administrative Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Facilities Management and Other Office Administrative Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Facilities Management and Other Office Administrative Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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