Flexibility: Key to Success When Outsourcing Information Technology

Fortnightly Magazine - November 1 1995
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In the utility industry's brave new world of deregulation, information technology (IT) (em and, specifically, "outsourcing" (em has acquired an entirely new meaning.

IT has become strategic. And important. So important that utility companies are seeking outside expertise to help them leverage technology to conduct business more efficiently, help grow revenues, and hone their edge in the new competitive world. Time has become an unaffordable luxury. Speed of change and speed-to-market are prime considerations.

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In selecting an outside firm as a technology partner (em one that will become acquainted intimately with your business and have access to proprietary company information (em keep the following issues in mind:

Accountability. An outsourcing contract should guarantee satisfactory performance of all measurable practical aspects of the job. These measurements should be expressed in plain language that makes the contract more practical to implement and defines clear expectations. Contracts should also build in aggressive productivity factors that guarantee operating efficiency and effectiveness over time.

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