We will develop our operating model and seek profitable growth from existing customers

In a recycling society, properties are maintained in such a way as to extend their useful lives and ensure that their operations are energy-, material- and cost-efficient. We offer solutions for creating comfortable working conditions for the users of properties. For property owners, we offer optimal cost efficiency.

 

Business environment

The following trends will impact the Facility Services division’s business in L&T’s strategy period 2015–2018:

• No significant growth in industrial production
As cost pressure increases, businesses are increasingly prepared to outsource support functions in order to maintain competitiveness.

• Digitalisation shapes the working environment
Thanks to new technology, people can work location-independently. As telecommuting becomes more popular, less office space is needed and multifunctional and demand-based premises gain a stronger foothold.

• Steady growth in renovation
The ageing building stock and difficult conditions are creating pressure to renovate properties and improve their energy efficiency.

• E-commerce is changing the requirements for retail properties
The physical space used for retail will decline and the demand for facility services will change.

• Challenges related to the availability of competent employees
The significance of workforce management, employer image and effective recruitment will increase.

Changes in customer behaviour that impact the Facility Services division’s business

• The trend of outsourcing services will continue
The demand for comprehensive solutions is growing, which makes competent sales work and efficient service production increasingly significant.

• The outsourcing of support services in the public sector is increasing
The economic situation and structural reforms are increasing pressures to outsource support services. This creates opportunities for Facility Services, but also puts pressure on operational efficiency.

• Properties are becoming more technical
The significance of technical competence and professional skill in property maintenance is increasing.

• Customers’ requirements related to reporting and transparency with regard to energy, property and environmental matters are increasing
This creates opportunities for expertise-based solutions.

Cornerstones of the Facility Services division’s strategy

• Improving competitiveness by developing the operating model
We will harmonise our operating methods and increase the degree of automation by implementing a consistent operating model and information systems that support it. We will improve our personnel utilisation rate and free up resources for productive work by developing our workforce management.

• Growth from existing customers through service development
We will productise our current services in order to improve cost efficiency and create added value for our customers through comprehensive service solutions. We will invest in customer relationship management.

• We invest in growth in the maintenance of technical systems
We will strengthen our service offering in our current operating locations. The competencies required for growth will also be obtained through acquisitions as necessary.