Outsourcing impacts on property market

Outsourcing impacts on property market

International property trends are the best guide to determining future developments in the New Zealand market, Helen Sheard, who heads DTZ New Zealand’s Occupier Services, says.

Surveys are showing that in countries where working styles have changed, there has been an impact in the type and size of office or factory space required.

International companies are already recognising the cost saving benefits of the trend to outsource and off-shore both manufacturing and white collar tasks, Ms Sheard says.

“Outsourcing will have an increasing impact on the property market, not only in New Zealand, but throughout the Asia Pacific region. Less occupier space is required at the company base, while facilities need to be provided in the countries providing the outsourcing services. ”

Ms Sheard says the initial trend for off-shoring was to China as a cheap manufacturing base or to India for back-room facilities such as call centres. Today the trend is for a more educated white collar workforce with increasing emphasis on China.

DTZ International Chairman David Watt will provide an insight into the new wave of white collar outsourcing to China when he visits New Zealand next week.

Mr Watt, based in Hong Kong and responsible for international property group DTZ’s Global Occupier Services team in the Asia Pacific region, is a guest speaker at the annual Property Council Conference in Rotorua from September 1 to 3.

China, an established base for cheap manufacturing, is now offering businesses worldwide more advanced outsourced capabilities, including software development, research and development and call centres.

Mr Watt will show how this trend, coupled with China’s emergence as a consumer as well as manufacturer for export, has driven new dynamics in property development, investment and use.

David Watt, who is responsible for servicing non-Asian clients entering or operating in Asian markets, particularly China, will discuss how China’s offering in the area compares with India.

Ms Sheard says that in New Zealand the large international corporates, many with Auckland bases, are leading the move to outsourcing.

“This is a sustainable trend because it has been a resounding success. Seventy per cent say cost savings have been above their expectations, 83 per cent say they have not only saved money, but they have increased their service levels as a result of outsourcing.”

The trend to outsourcing is already having an impact on the region’s property market, Ms Sheard says.

Background: DTZ New Zealand, one of New Zealand’s largest property services companies, is a multi-national multi-disciplinary company with nine offices throughout New Zealand.

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