Monday, September 12, 2005

Advantages offered by Outsourcers

Outsourcers offer significant advantages of scale, reduced labor rates, highly experienced management teams, and fewer points of contact.
The 2004 agreement between TXU and Capgemini Energy, LLC, is a perfect example. It illustrates why a large utility like TXU chose to outsource not only its entire Customer Integrated Systems (CIS) and billing, but also its IT infrastructure and back office support. The utility stated at the beginning of the relationship that through outsourcing, it wished to realize a "step-change" in both cost reductions and improved customer service.
More sophisticated services are firing greater interest within the utility industry, according to Perdue. He says Utilipoint recently completed a survey of 300 investor-owned utilities (IOUs) in North America. When asked if they were considering outsourcing BPO, 13 percent of the utilities surveyed (about 40) said they were actively doing so. "We'll probably see more activity in the near future in the US and probably even a higher instance on a global scale," he says.

The article sponsored by A-1 Technology Inc, dealing in offshore outsourcing and software development outsourcing