Employee resignations, supply chain challenges, travel restrictions, and the continued impact of COVID-19 are among many reasons why executives are thinking about how they will conduct and manage their business going forward. The plan must be dependable, consistent, and have contingency policies in place to prepare for potential disruptions of all types. This is true for revenue generating activities as well as internal operations, including lease administration. In-source or out-source, domestic or international – the approach chosen should support long-term needs and vision. If you’re a U.S.-based multinational company and outsourcing lease administration is your strategy, here are five things to know about the many advantages of working with a domestic lease administration partner:
1. Direct Contact and Swift Response Times
Sometimes situations arise that require an immediate response. Having a U.S.-based team gives organizations a direct communication path to someone who can problem solve and respond without a delay due to time zone, location, and other international considerations. Ongoing processing times oftentimes are quicker as well, due to the overnight effect time zones have on email correspondence and processing data or files.
2. Business Practices and Customs
Today’s lease administration teams possess professional skills far beyond maintaining hard copy lease files. They often are called upon to abstract and summarize legal language, evaluate lease compliance, process payments, provide accounting support, maintain and operate a lease administration system, and more. These tasks can be influenced by business practice nuances of the countries that the documents originate from. If you’re a U.S.-based multinational company, why wouldn’t your lease administration team be comprised of people who have the best understanding of U.S. business?
3. Consistency
Each time a lease administration team experiences turnover, the team loses valuable knowledge and history. Overcoming knowledge loss can be challenging for all lease administration teams facing change, but for international-based teams, the learning curve can be steeper. In addition to training responsibilities and processes, international teams working with U.S.-based clients must also learn other skills including basic contract law, GAAP accounting, common business practices and others, all of which influence and contribute to consistent lease abstraction, processes, and outcomes. Consistent data is important, but consistent data combined with the appropriate context is an influential driver of critical decisions.
4. Computers, Connection, and Infrastructure
We are fortunate in the U.S. to have solid infrastructure that supports our ability to connect from almost anywhere, meaning for many office roles, the need to work from a specific physical location is limited. Public and private internet connections, web-based applications, VPN access, cell phone coverage, and laptops and other portable devices enable many professionals in office roles to work from anywhere instead of a designated physical location. But this may not be the case in other global regions, where we hear of struggles with hardware, connections, and infrastructure that affect business operations. Whether by choice or by necessity, a fully remote or hybrid workplace requires the ability to connect as if we were working from an office, regardless of actual physical location.
5. Value
There is a perception in the marketplace that domestic outsource providers are the expensive option for outsourced lease administration. While it may or may not be true that the financial commitment is greater, cost versus value analysis should consider more than merely the price. Knowledge, industry leadership, reputation, flexibility, scalability, and other qualities all contribute to the determination of whether a service provider offers the best value and is the best match to meet strategic objectives. The value in the outsource relationship lies not only in the contract amount, but also the other intangibles that contribute to a team’s success.
Scribcor Global is the preferred independent lease administration partner managing all types of leases for multinational U.S.-based companies in many different industries. Each day, our professionals contribute their expertise and industry knowledge to complex lease situations, ensuring lease compliance, reducing real estate spend, and adding value to our client teams. Let us show you how by contacting us today.