Project Management
Global Property Consultancies eye Project Management Services opportunity in India
2:05 PM
Global Property Consultancies eye Project Management Services opportunity in India
Players like Knight Frank, JLL, Savills and Colliers are among those focusing on the PMC business.International property consultancies are renewing their focus on project management services (PMC) in India. With both government and private sector driving economic development, IPCs see potential in unlocking value from project management services.
“Project management services is a large and emerging business opportunity. We will be undertaking both small and large PMC projects,” Bhavin Thakker, Country Manager, Tenant Representation, Savills India, the Indian arm of the UK-based entity, said.
Anurag Mathur, CEO, Project & Development Services, JLL India, said, “A supportive politico-economic climate has fostered favourable conditions for more and more large MNCs to set up operations in India. Various initiatives like Skill India, Make in India, Start-up India, etc. that have been launched by the government in recent times have significantly driven economic development. All of this, in order to be successful, requires project management as an underlying enabling factor.”
Industry experts BusinessLine spoke said that PMC services can contribute a significant chunk to the topline of property consultancies even though it is a highly labour-intensive business.
“A typical IPC would have three verticals — advisory, agency and management services. PMC services typically fall in the management services category. It is an integral part and complements the transaction and brokerage businesses,” Deben Moza, Jt CEO and ED, Project Management Services, Knight Frank India, said.
He said currently the company manages close to 30 million sq feet of PMC in sectors such as IT/ITeS, pharma, media and entertainment.
PMC typically entails project management consulting, capital improvements, multi-site program management, advisory, build-to-suit development, construction management and tenant improvements, among others. JLL quoting a Project Management Institute’s Pulse of the Profession 2015, notes that organisations that drive optimal project management practices meet their goals twice more often than those in low-performing organisations.
Mathur said that the introduction of GST will usher in better prospects for project management in the warehousing sector. “We will also see increasing investments into professional PM coming in from the pharmaceutical sector and large-scale infrastructural projects,” he said. R Shobha, National Director, Project Management, Colliers International India, said that while the corporate world has been a front-runner in using PM services, many developers are now outsourcing their projects to renowned PMCs for their independent project support and subject matter expertise.
She added that the PMC vertical is a significant contributor to the topline for any IPC and can contribute 30 per cent or more of the overall cost.
- by Bindu D Menon
Source :- The Hindu Business Line
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