Outsourcing is the latest buzzword in real estate. The concept of outsourcing is not entirely new though, with its early iterations dating back to the industrial revolution and with the boom coming in at the early 2000s.
In 2017, the global market size for outsourced services was estimated at $88.9 Billion and it shows no signs of slowing down.
Real estate businesses have latched on to the outsourcing trend, seeing the benefits it has afforded organisations worldwide and how it allows them to be competitive in today's economic landscape.
On its recent Real Estate Industry Benchmarking Survey, Macquarie Bank confirms that a significant number of agencies would consider outsourcing across business functions.
Let's take a closer look at why real estate businesses are making the switch to outsourcing and how it can also help your agency.
According to Deloitte’s 2016 Global Outsourcing Survey, a majority of businesses outsource to reduce costs. Simply put, hiring an outsourced staff is less expensive than a full-time onshore employee.
Our case study with a real estate organisation shows how an agency can save $75,000 annually on employment costs of a Junior Property Manager. This is very important as the savings you can get from hiring an outsourced staff can be re-invested to grow your business.
2. Improved operational efficiency
For outsourcing to really give you the results you want, a process audit is required; and, it is usually in listing down procedures and seeing how they work with your offshore staff where most businesses often find inefficiencies in their processes. Finding ways to streamline and simplify work is one of the gifts of outsourcing and can help your business gain a competitive advantage.
Technological advancements, like cloud technology, have also made it possible for remote staff to do tasks as an onshore team would, without sacrificing quality and with no backup and maintenance needed that can result in lag times.
3. Maximised productivity
Work productivity is often an issue for real estate agencies. In property management, for example, team members often must deal with menial, time-consuming tasks that need to get done but often interferes with their core job function. When your team can delegate a bulk of their task so they can focus on work that makes use of their expertise, more work gets done in a day and your employees are happier doing what they love to do.
4. Enhanced customer service quality
When businesses have streamlined their processes and focus on high-value work, it can only trickle down to benefit customers. Real estate, after all, is customer service at its core. In a world of bots and automated communications, customers appreciate a good interaction with their agents and property managers from time to time, which your team can now do more of as they are relieved from tedious tasks.
Moreover, an outsourced staff can help in the efficient handling of an agency's growing number of managed properties from tenancy application to renewal, resulting in higher customer satisfaction from both owners and tenants.
5. Global talent access
While the wage of an outsourced employee is considerably lower than of an onshore staff, the skill and standard of work are not. Take for example hiring an outsourced staff from one of the major exporters of outsourced services today, the Philippines. The Filipino workforce is full of skilled, professional individuals, a majority of whom are university graduates.
With outsourcing, real estate agencies now have access to this talent pool beyond their locale, bringing in a diverse set of skilled workers to their fold.
The benefits of outsourcing are certainly plentiful for real estate agencies, especially in the area of property management. But before dipping your toes into outsourcing, it is important that you arm yourself with the right information and look for a trusted provider to help you navigate offshore waters.
Our Ebook on outsourcing for real estate professionals is a good place to start in your research.