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The Indirect Cost Savings of Integrated Facilities Management (IFM)

From healthcare and commercial, to education and entertainment: companies are increasingly outsourcing facility services by hiring an Integrated Facilities Management (IFM) team. 

Hiring an Integrated Facilities Management team (IFM) can provide instant savings to your budget, but cost reduction extend past those direct savings.

To give you a better understanding of the indirect ways outsourcing to an IFM team can save you money, we're using an activity-based approach that lists how various departments can benefit. 

Indirect Cost Savings with Integrated Facilities Management (IFM) by Department


When the contract is signed, capital purchases are turned over to the IFM team. The owner doesn’t have to worry about depreciation, maintenance, or the cost of capital tied up in those assets. That frees up capital for other initiatives that can bring a better return on investment. That’s a positive sign investors can support.

Human Resources 

The immediate savings here comes from transporting labor costs to the IFM team. Those savings are in health care payments, government transfer payment taxes, and payroll taxes, but it can also pay off in:

  • Hiring costs: Job descriptions, advertising and interviews are expensive, and can easily be turned over to the IFM team. Human resources may still have a role in hiring since employees will still be seen as representatives of the owner’s company.
  • Retention/Performance management: Costs from annual reviews, raises, training, promotion, and backfilling those positions are also outsourced.
  • Unemployment/worker’s compensation
  • Overtime, vacation/sick leave, and scheduling replacement workers


With a competent organization working as a one-stop shop for the owner, management can turn their focus back to their departments. The increased revenue and productivity these valued leaders can provide will eliminate the opportunity cost required to supervise an in-house facilities team.

Departmental downtime

If you have been in business for a few years, you probably have seen this: Something breaks after 5 p.m. on Friday and isn’t noticed until Monday morning. Employees get to their desks, only to find them soaked and water dripping from the ceiling.

With an IFM team, problems don’t linger all weekend, or over holidays. IFM teams work 24/7, and larger companies have call centers in various time zones. Policies are in place for off-hour recoveries to keep downtime to a minimum.

Job cost accounting

Can you name how many service contracts you have? Which companies serve which function? Having a single-source contract eliminates the need for multiple contracts – those all go through the IFM team. This can reduce customer transaction costs and invoicing costs.


Speaking of contracts, your legal team might throw a celebration for streamlining all of them into one. Your IFM contract will likely be more dense, complex, and comprehensive than smaller-scope contracts, but will make up for its complexity by providing a single document for all needs. Your attorneys won’t need to spend as much time on contract management and coordination, and acquisition/services support will be reduced as well. Even better for your legal eagles: liability will be much easier to identify.


Hardware, software and licenses all should be transferred to the IFM company. Upgrades and change management become an IFM decision. Best of all, your IT won’t be spending valuable time supporting facilities’ software issues.

IFM teams provide savings beyond their traditional, direct applications. If facilities management is taking you away from your main focus, consider outsourcing to a third-party IFM provider.

Did you learn something new? Share this blog to keep your circle informed, and please take advantage of the e-book below to gain a better understanding of your facility's risk factors.

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Related: How to Leverage Vested Outsourcing with Facility Maintenance Companies 

Related: 3 Reasons Why Companies are Outsourcing Facility Services

Related: 4 Ways Integrated Facilities Management Can Increase Your Bottom Line

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