FEATURE ARTICLE, JULY 2006

OUTSOURCING SYSTEM MANAGEMENT LOWERS COSTS
When it comes to security systems for a property, outsourcing security management can be the best way to operate.
Richard Kier

As buildings and tenants operate around the clock, the challenges of protecting people, physical assets, critical systems and confidential information are intensifying. Despite the demands of 24/7 activity, savvy building owners and managers are lowering costs, providing better security and mitigating liability by outsourcing the operation and management of their security systems to experts.

Owners, managers and tenants who choose to run their security systems themselves often find that they are bogged down with the various aspects of day-to-day operation and management of their systems. Despite these systems’ state-of-the-art technology and earnest employees, run-it-yourself security systems incur operational and technical problems that result in security lapses, property damage and substantial, unnecessary expenditures. Run-it-yourself security systems generally have to be replaced every 6 years — not because the technology becomes obsolete, but because the systems are not being operated properly.

Determining Security Requirements

Building owners demand functional, cost-effective building security systems that control access to their buildings, expedite visitor traffic, monitor alarms and instill tenant confidence. Tenants demand that their employees be able to use one access card to enter their suite, their building, their offices in other cities, and the buildings in which those offices are located. Privileges of terminated employees must be revoked immediately. Security systems must be designed to accommodate future changes in both technology and tenant space configurations.

The Outsourcing Solution

The benefits of outsourcing the operation and management of a security system to experts include:

• Lower cost. On average, an outsourced managed security system will save building owners more than $400,000 over 6 years.

• Greater tenant satisfaction. Each tenant in a building can have a customized, user-friendly security system that can accommodate expansion, contraction and renovation.

• Mitigated liability. Outsourcing system operation and management to experts lessens a building owner’s legal liability.

• Investment protection. Outsourced managed security systems proactively protect investments and prevent asset damage by monitoring a building’s critical mechanical systems from a remote location. Trained professionals also initiate appropriate responses to fire and life safety alarms.

• Better security and control. Outsourced managed security systems are operated by experienced security professionals whose primary responsibility is keeping buildings and offices secure 24/7.

Solving the Ongoing System Management Problem

Outsourcing the ongoing operation and management also alleviates the headaches associated with running an electronic security system. Security specialists, whose primary responsibility is ongoing security system management, are better equipped than building owners and managers to be accountable for an electronic security system’s vital functions, which are composed of programming, operations, administration, changes and upgrades, and monitoring.

• Programming: The configuration of an outsourced security system may be adapted to reflect the constantly changing requirements of buildings and tenants.

• Operations: The outsourced security system is backed up off-premises, where the security specialist continuously maintains the client’s database of information, along with emergency generators, redundant computers, and IT staff to run the physical infrastructure of the system.

• Administration: In real time, access cards can be added, deleted or changed; authorizers can be modified; and the system administered through the outsourced security expert or directly by a building over the Internet as professionals are hired, terminated or assigned new privileges. The building owner also has the ability to audit and control specific aspects of its security system over the Internet.

• Changes and upgrades: Because the system is run remotely, the outsourced security expert can implement ongoing changes seamlessly and upgrades behind the scenes.

• Monitoring critical points across multiple systems: The security expert can monitor and control all points of access and critical systems for multiple offices 24/7 through dedicated data lines that are connected to the security provider’s off-premises operations center.

Outsourcing System Management: A Compelling Value Proposition

The total cost of owning and operating a security system will be determined by whether building owners and managers choose to run the system themselves or outsource the operation and management to experts. Lower cost is only one benefit of outsourcing. Failure to maintain appropriate security measures and systems can expose real estate investors to the risks of lawsuits such as the one brought in 2005 by two attorney tenants who contended that the lobby of the Empire State Building was inadequately secured. Office building owners report that by outsourcing the operation and management of their system, they are able to focus exclusively on their core business of buying, managing and leasing property, which increases tenant satisfaction and leads to increased tenant retention.

Jim Mustard, senior vice president, sales, Kastle Systems

©2006 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.