Search archive:
Would clients benefit from a joined-up approach to these two key parts of their infrastructure? If so, who is best positioned to supply this bundled offer?
Some FM companies, eying the £9bn IT Services market, are grappling with these questions. Within IT similar questions are being asked: in particular, is IT becoming a utility like electricity?
FM companies with IT interests
McAlpine Business Services:
- Built on Stiell acquisition, incorporating Stiell Networks (designs, installs, maintains IT networks).
- MBS has £211m sales.
Enterprise
- Acquired JMPC (now Enterprise MPC) from Jarvis in July 2004.
- EMPC (£12m sales) is a systems integrator and VAR largely focused on the education sector.
Some FM companies have IT interests (see box) but at Credo we are sceptical of grand claims of a collision of IT and FM. We are even sceptical that there’s much of an opportunity for FM companies in IT. Here’s why:
There are a few large contracts that bundle FM and IT (e.g. Liberata and Jarvis at Redcar) but these are poor guides to the future. Most business isn’t about mega-deals, it develops incrementally.
The purchasers of IT and FM within companies are different people, often with different scopes of operation (IT might be national, FM local). There is little push to end this.
If bundled IT and FM services were to prove successful, which providers would win in this market? In our view, it would be the IT firms: they are more likely to have the CEO’s ear; only IT companies can manage technology risk; and IT is inherently higher value. FM companies should be careful what they wish for.
Dineshi Kodituwakku is a Principal at Credo.
Copyright © 1999-2008 Credo Group Ltd.