Utilities have considered the advantages of outsourcing for years, though it usually involved transferring people rather than assets in the regulated era. The ongoing competitive pressure spurred by utilities deregulation has now freed — or perhaps forced — utility executives to consider alternative sourcing strategies as an integral factor in positioning their companies for strategic advantage.
More than ever, the focus for utilities is on cost reduction, variability of costs and better service provision to stay in business and sustain success, thus executives are getting more serious about investigating new alternatives for competing more effectively. This ISG white paper posits that utilities’ appetite for sourcing alternatives will continue to grow, based on the regulatory history and resulting industry participant behavior.
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