1. Entering into an agreement with a service supplier to manage internal company facilities such as telecommunications or data-processing services. Facilities management does not involve the transfer of ownership of facilities to the service provider.

2. For government enterprises, FM is the most prevalent type of contractual relationship where the vendor assumes responsibility for one or more information technology (IT) functions. Unlike outsourcing, it refers to the vendor operating and managing the assets (usually hardware and software), but not taking ownership. In a government-owned, contractor-operated deal, the government owns the equipment and operating systems, and the contractor operates the equipment with its personnel. Usually, the equipment is maintained in a government facility, but it can reside in a vendor-owned facility. In a government-owned, government-operated arrangement, the government owns the equipment and manages the operation using contractor personnel.