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CRM and Outsourcing: Outsourcing Growth?

A behind-the-scenes look at what industry influencers are saying.

Fortnightly Magazine - May 2006

and possibly get a balance sheet hit for the sale of assets.”

Adding It All Up

Several themes are woven throughout the comments of these analysts. First, current economics and internal industry issues are forcing management to evaluate how, not if, outsourcing can offer a solution. Second, utilities are best served by selecting vendors with deep expertise in their specific outsourcing needs. And last, the high-profile outsourcing deals by NiSource and TXU have caused utility management to sit up and take notice. While more comprehensive outsourcing agreements may lie ahead, activity to date indicates selective outsourcing is the more readily adopted and appropriate model. Today, outsourcers must demonstrate both deep expertise and a track record of positive outcomes if they hope to increase their market presence. As a whole, the industry is more receptive to outsourcing discrete functions where control and results are more transparent, and the perception of risk is lower.

 

Endnotes:

1. Kelly Shermach, “Selective Outsourcing,” CRM Buyer, March 14, 2005. Available at http://www.crmbuyer.com/story/Selective-Outsourcing-41083.html.

2. Robert H. Brown, “Forecast: Business Process Outsourcing, North America, 2004-2009,” Gartner Group, Aug. 11, 2005.

3. Ibid.

4. Dennis Smith, Chartwell Inc., Response to Alliance Data Survey, e-mail dated Feb. 3, 2006.

5. Jon T. Brock and Matt Smith, “The Power of Business Transformation,” Daily IssueAlert, UtiliPoint International Inc., Jan. 30, 2006.

6. Warren B. Causey, EnergyCentral, “Response to Alliance Data Survey,” e-mail dated Feb. 6, 2006.

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