Existing Centers. In some cases, the enterprise customer already owns all the people, process and technology necessary to perform the service that it wants to outsource. It may enlist the assistance of a service provider in to operate and maintain the service delivery infrastructure, without any substantial number of the enterprise customer’s service personnel.
No Transfer of Ownership. The “facilities management” (“FM”) model is virtually identical to the BOT/BOOT project finance model, except that FM does not involve any transfer of ownership of any infrastructure. In a pure FM contract, the service provider provides people, processes and technology to solely to ensure the functionality and viability of an existing infrastructure. FM services may include change management.
Typical Examples. The phrase “facilities management” has been applied traditionally to real estate management, but has been extended to information technologies such as servers, networks, end user computing, website administration and other infrastructures.
Control. The FM model can be distinguished from the “virtual captive” model by looking at who owns the underlying infrastructure, such as a commercial building, a residential leased building or a data center. In FM, the enterprise customer owns such underlying infrastructure and the FM service provider normally owns its own service delivery infrastructure (the people, processes and technology). In contrast, the “virtual captive” service provider owns neither the underlying infrastructure nor the service delivery infrastructure, but uses know how and proprietary technology for managing the service delivery infrastructure.
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