To mitigate this risk, other solutions as alternatives to purchasing or leasing are now emerging, such as managed office solutions (MOS) that deliver a combination of benefits not available with traditional solutions. For example, they are typically offered on a fixed-price, fully-managed contract basis; they include all the fit-out and furniture; they dont require any capital outlay, they offer all the IT and communications infrastructure required to run a business and there are no exit penalties to pay at term. The result is that business operators can achieve true total cost clarity for their entire property contract throughout its duration. At the same time they can also mitigate the associated risk of property and its supporting infrastructure. Key benefits of MOS:
Ensuring complete cost-clarity throughout the term of their property contract with no capital outlay and on a fixed-price basis
Reducing the risk of having the wrong property in the wrong place at the wrong time by aligning their property contracts to foreseeable business planning horizons
Being contractually guaranteed to have property delivered on-time, on-budget and fit for purpose
Offering stringent Service Level Agreements (SLAs) to ensure peace of mind of business continuity throughout the contract period without any future capital outlays
Eliminating depreciation and obsolescence on technology
Providing a clean exit at term – with no dilapidations, lease overhangs, or legal fees to pay
Increasingly organisations are trying to arrive at a workstation cost that includes all property and supporting infrastructure and have a full understanding of all the costs in providing an efficient working environment for their employees. By adopting a managed approach to property and engaging in a professional partnership with a specialist MOS supplier, organisations can achieve this goal and at the same time avoid incurring a multitude of hidden or unknown property costs. By choosing an alternative office solution to leasing or purchase, responsibility and risk can be delegated to a third party, costs are lowered and management time is liberated. Directors can then spend time on what they do best: manage their business! John Gotley is managing director at occupier solutions business Portal.
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