Utility Industry Labor Sourcing Strategy Cost Analysis
Finding Quality Resources through Economically Feasible Means
Abstract
As the utility industry
continues to change a more deliberate focus is given to the costs of goods
sold. The importance of finding the best
labor sourcing strategy is becoming a key element of running a successful
utility. This study evaluates the three
best fit labor sourcing strategies for utility craft employee work scopes from
a direct wage perspective, total hourly cost perspective and finally across a
recurring project scope perspective. From
an hourly total labor cost perspective the Crew Augmentation strategy is a 26%
savings versus the Internal Resources strategy and a 15% savings versus the
Outsourced Scope strategy. The Crew
Augmentation strategy had a project cost savings of 11% versus the Outsource
Scope strategy and a 39% project cost savings versus the Internal Resources
strategy. The crew augmentation labor
sourcing strategy is best aligned with the utility industry’s evaluation
criteria.
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