Comparing the why, what and how of performance-based and Vested outsourcing models in CRE

Kate Vitasek and Michele Flynn
Additional contact information
Kate Vitasek: Faculty member, University of Tennessee, USA
Michele Flynn: SIREAS, LLC, USA

Corporate Real Estate Journal, 2018, vol. 8, issue 1, 33-52

Abstract: The concepts of Vested outsourcing® (as developed by University of Tennessee [UT] researchers) and performance-based contracting have significantly gained in popularity as more and more corporate real estate (CRE) organisations look to increase the value of their outsourcing relationships. This paper builds on ‘Choosing the right sourcing model for CRE outsourcing agreements’ which was featured in Corporate Real Estate Journal (CREJ) Vol. 7, No. 3 by providing a comparison of performance-based and Vested models. Both models share many of the same principles such as focus on the supplier’s expertise and considering value above ‘price’. However, performance-based contracts and vested are distinctly different in their focus, application, methodology and resulting relationships. This paper explores the similarities and major differences between these two proven approaches. It also provides guidance relative to when to use each model.

Keywords: sourcing; sourcing business models; real estate; facilities management (FM); outsourcing; Vested outsourcing; performance-based; outcome-based (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/2122/download/ (application/pdf)
https://hstalks.com/article/2122/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:crej00:y:2018:v:8:i:1:p:33-52

Access Statistics for this article

More articles in Corporate Real Estate Journal from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().