In this Corporate Real Estate Journal article, Michele Flynn of SIREAS teams up with Kate Vitasek, a faculty member for Graduate and Executive Education at the University of Tennessee’s Haslam College of Business Administration.
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.READ THE ARTICLE