State of the Industry Report 2007-2008

Chapter Fifteen here’s where we are today: • Increased outsourcing has created the outsourced “solutions or resource integrators” identified by CoRE 2010 • Service providers are now delivering “externally provided infrastructure services, including CRE, on behalf of their client corporations,” as foreseen. • The CRE leader could play this role internally, as we outlined in 2004. And, as our 2007 results indicated, the predominance of outsourcing is creating a concentration of higher-level strategic functions inside the CRE department itself. • But to the extent that 2010 foresaw CRE to play the role of the internal infrastructure integrator, the IRIS adoption rate continues to lag behind most of the other key seven facets of CoRE 2010. • CRE today is generally more engaged with It than with other parts of the internal corporate infrastructure, more so than with hr or other support functions. what will it look like in 2010? • From the standpoint of BPO, supply chain management, and the service provider industry’s growing influence, IRIS is a real force today in CRE and will become more so by 2010. • This affirms the expectation that by 2010, “service partners may manage significant portions of the integrated infrastructure.” • From the internal corporate side, the 2010 forecast also included “organizational” applications that have begun to happen but are still not likely to reach the level envisioned by the forecast in time for 2010. • Take the fact that there aren’t any corporate “IRIS Departments” or any “Directors of IRIS” as one indication of this lag. beyond 2010: • By assuming the cost and investment of portfolio, technology and even employment, service provider risk will expand to higher levels, and thus the current compensation model will evolve to a more risk-averse state. • The creation of an active derivative/insurance market to mitigate risk was predicted for 2010 but seems more likely beyond 2010. • This may become another new characteristic of the “blurring of lines” now under way between corporate occupiers and service providers. • Internally, CRE executives may become less known as “IRIS Directors” or “Solutions Integrators,” but possibly more known as “life Cycle management directors.” This evolutionary step reflects the new mindset of corporate governance. It’s a possible IRIS hybrid surrounding the fast-emerging enterprise chapter fifteen State of the Industry 2007-2008 59 http://www2.corenetglobal.org/home/index.vsp

Table of Contents Feed for the Digital Edition of State of the Industry Report 2007-2008

State of the Industry Report 2007-2008 Contents Chapter 1: Introduction : CoRE 2010 Framework and Report Structure Chapter 2: The Changing Business Environment Chapter 3: Executive Summary of Key Findings and Conclusions Chapter 4: CoRE 2010 Adoption Rate Chapter 5: Sustainability/Corporate Social Responsibility Chapter 6: Global Sustainability Survey and Roundtable Findings Chapter 7: Workplace Practices/Work Environments Chapter 8: Workplace Related Issue: The War for Talent Chapter 9: Asset Management/Portfolio Optimization Chapter 10: Solutions Delivery Chapter 11: Location Strategies/The Strategic Role of Place Chapter 12: Location Related Issue: Site Selection Morphs to Portfolio Alignment Chapter 13: Strategic Competencies/Enterprise Leadership Skills Chapter 14: Competencies Related Issue: The War for Talent in Corporate Real Estate (CRE) Chapter 15: Integrated Resources Infrastructure Solutions – IRIS Chapter 16: Technology and the Web Chapter 17: Technology Related Issue: Removing the Obstacles to Industry Data Standards Acknowledgements and Sources

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