June 26, 2002—Of the three hundred utilities interviewed for SCIENTECH’s 2002 Research & Intelligence Report for Utility-Focused Technology Providers, 29 percent reported that their company had considered outsourcing information technology-related services as a strategic alternative. The report also found that the two most favorable groups for outsourcing are investor-owned utilities (45 percent) and electric municipals (50 percent).
According to Chartwell’s report, “Outsourcing: Solutions for the New Utility 2002,” the next few years will see an exponential growth in outsourcing customer care services among utilities. One study published in the report notes a steady rise over the past four years in the number of utilities choosing to outsource certain elements of their customer care operations. The report predicted that 24 percent of utilities surveyed in 2001 chose to outsource—up from 8 percent in 1999.
ORCOM, a leader in outsourced customer care and billing services for utilities, says the studies validate its vision that at least half of US utilities will outsource these services by 2012. The company attributes the rise to the fact that utilities are more carefully evaluating their business process efficiency and technology investments. With a focus on cost reduction, operational efficiencies, and the demand for increased quality of service, outsourcing provides the rapid return-on-investment necessary for long-term, increased profitability.
