As buildings age and sustainability compliance becomes more demanding, Facilities Management (FM) is undergoing a fundamental shift. What was once treated as a routine maintenance function is now being recognised as a strategic contributor to business performance, asset longevity and ESG outcomes, observes Keerthana Sundar, Special Correspondent, Clean India Journal.
Traditionally, the conversation around FM has centred on the immediate expense of maintaining a building. But industry experts now argue that this cost-focused view is outdated. With rising energy prices, labour limitations and the need for accurate reporting, manual, reactive maintenance no longer suffices. Instead, organizations are looking at how digital tools unlock long-term value.
The integration of digital solutions reduces lifecycle costs and also helps organizations transition from crisis-based responses to predictive, data-driven strategies.
The operational phase of a building typically accounts for 60-80% of its total lifecycle cost, a figure that dwarfs the initial construction investment. Dr Sayantan Sinha, Vice President at JMD Group, proposes that the uncontested market spaces – known as the ‘Blue Ocean’ — for FM lies in early involvement and predictive maintenance (PDM).
“Predictive maintenance and asset management are intertwined strategies that leverage data and technology to optimize the performance, reliability, and span of physical assets. ”
— Dr Sayantan Sinha
“Integrating FM at the design stage prevents costly rework and reduces lifecycle costs by up to 20%. By utilizing Internet of Things (IoT), sensors and Artificial Intelligence (AI), facility managers can monitor the health of critical systems in real time,” suggests Sinha.
The use of PDM to extend the useful life of expensive assets like elevators is one such example. By identifying wear before a breakdown occurs, FM teams reduce material waste and embedded carbon emissions, directly supporting circular economy principles and green building certifications such as LEED or BREEAM.
Manual processes are no longer viable for managing aging infrastructure or meeting modern Environmental, Social, and Governance (ESG) reporting standards. For Lt Cdr Vinayak Patil, Head of Administration Facilities and Infrastructure at Cyient, the drive toward automation is a response to the rising costs of energy and manpower.
The value of automation is in the ability to move from ‘panic-driven’ reactive measures to proactive resource management. Real-time data provides a transparency to justify capital expenditure to financial stakeholders.
Patil implemented water budgeting via smart meters in Hyderabad where water supply is limited. By tracking the flow between municipal supply, tankers and recycled water from Sewage Treatment Plants (STP), the team identified that the highest wastage occurred in flush lines. This data-led intervention resulted in a 25% reduction in water consumption within a single quarter of an assessment year.
Have a readymade output of what KPI and KRA you want to measure and then start automating in reverse; that will be more effective in full-proof implementation.”
— Lt Cdr Vinayak Patil
By installing sensors to monitor temperature and humidity in network switch rooms, one can replace manual four-hourly checks with an automated trigger system. This shift reduces necessary manpower by at least 20%, allowing staff to focus on more complex tasks.
FM often competes with production departments for funding; therefore, the argument for investment must focus on business optimization rather than just “spending money”.
Space non-utilization is a significant hidden cost, noting that in many offices, up to at least 50% of space remains under-utilized due to hybrid work or travel. Digital tools allow FM to measure this gap and redesign workplaces for actual needs, such as collaborative areas rather than redundant desks.
| Strategic Roadmap: Implementing Digital FM Excellence | |
| Strategy | Actionable Deduction |
| Phased Scaling | Avoid the temptation to automate every system simultaneously. Begin with one critical area, such as HVAC, water budgeting, or food waste, to demonstrate clear results before expanding. |
| Output-First Planning | Reverse the traditional procurement process by defining desired KPIs and KRAs first. Select technology solutions that serve those specific outcomes rather than finding a problem to fit a tool. |
| Data Integration | Move away from isolated spreadsheets. Use a unified platform that integrates diverse data streams into a single dashboard to enable real-time, informed decision-making for senior leadership. |
| Change Management | Technical tools fail without human alignment. Ensure both facility executives and senior leaders undergo training to understand and utilise the latest technological terms and capabilities. |
| Lifecycle Vision | Focus on the “iceberg below the water” by involving FM at the project initiation stage. This foresight addresses the 60-80% of total costs that occur during the operational phase of the building. |
Sangeeta Ray, Lead Consultant at EFKON India, emphasizes that FM professionals must speak the language of value to compete for corporate budgets. “Global firms like Capgemini and Siemens, use India-based hubs to manage global energy savings,” she said.
By understanding the depth of available technology rather than just the surface features, these organizations treat FM as a strategic asset. She suggests that providers should sell “values” and performance outcomes rather than simply “headcounts” for cleaning or electrical jobs.
If we know the products available and the depths of their capabilities, then we would be concentrating on selling values and not on selling headcounts to the customers.”
— Sangeeta Ray
The transition to a value-based FM model requires a disciplined approach to technology. There are several strategic deductions for future-ready operations:
1. Prioritize Integration: Avoid collecting fragmented data in various spreadsheets. Use a single platform to integrate different data streams for a holistic view.
2. Reverse Engineering Goals: Do not purchase a solution and then search for a problem. Define the Key Performance Indicators (KPIs) first—such as energy units per square foot or occupancy rates—and then select the technology that measures them.
3. Human-Centric Change: Technology is only effective if the team is trained to use it. Change management is essential to ensure that facility executives and senior leaders alike are aligned with the digital tools.
4. Scalable Adoption: Start with one critical area, such as HVAC or food waste. Prove the Return on Investment (ROI) on a small scale before implementing the solution across the entire portfolio.
By focusing on the ‘iceberg below the water’ — the long-term operational health and sustainability of an asset — FM transitions from a cost centre to a primary driver of organizational value.
| The Value Equation: Key ROI Metrics | |
| Key Metric / Value Indicator | Reported Impact / ROI |
| Lifecycle Cost Reduction | 15–20% reduction in total lifecycle costs through early FM involvement and predictive maintenance. |
| Operational Cost Capture | Identification that 60–80% of a building’s total cost occurs during the operational phase, not construction. |
| Water Resource Efficiency | 25% reduction in water consumption within a single quarter via smart budgeting and real-time monitoring. |
| Labour Optimisation | 20% reduction in manual manpower requirements by replacing routine physical checks with automated sensor triggers. |
| Space Utilisation Efficiency | Identification of 45–50% unutilised space; optimization allows for significant reduction in overheads and energy waste. |
| Operational Benchmarking | Shift from “selling headcounts” to “selling value,” leading to higher strategic alignment and improved resale/rental value. |