Transformation of Outsourcing and In-Housing Practices in Corporate Real Estate Management

Abstract

Background and aim. The COVID-19 pandemic led to unexpected disruptions and changes in the global business environment. As a result, companies are now re-evaluating their sourcing strategies for their real estate function. Therefore, this research studies the current CREM in-housing and outsourcing drivers and how the sourcing practices are constantly transforming. Methods. The research collects data via semi-structured interviews in seven technology organizations. Results. The findings include five drivers for outsourcing and five drivers for in-housing CREM services, spanning from the lack of internal resources to accessing market expertise, and from gaining full control to minimizing distractions. Similarly, the analysis revealed six ongoing transformations, including the strategically significant transformation of CREM, prompting organizations to establish onboarding programs to retain new talent. Originality. This explorative research examines global organizations' sourcing practices. Practical implications. The study showed a need for transformations in CREM in-housing and outsourcing practices in technology companies. Thus, companies need to be able to adapt to changes in-housing and outsourcing CREM by re-evaluating their CREM outsourcing and in-housing.