An analysis of rightsourcing in the electricity supply industry

Abstract

The country is currently experiencing a tight electricity schedule. The demand for greater capacity than the country can supply is a reality. Raising unemployment and poverty levels are a situation we contend with daily. The aim of the study is to create a generic framework for right–sourcing in the electricity supply industry. The various phases of strategy creation were analysed to achieve this target. The process of identifying core business processes was discussed. Strategic alignment is important for the success of the Information Technology strategy; this study discussed how this could be accomplished. The various Information Technology sourcing strategies were examined. The probability of a process being outsourced, stemmed from the simplicity and repetitiveness of a transaction or process, and costs involved. An empirical study was done with both quantitative and qualitative analysis. The study looked at Contract Management, Information Technology Strategy and Benchmarking. A comprehensive right–sourcing framework was developed to assist in making the correct decisions. This framework could guide new entrants to the ESI in helping them shape their strategy and formulate a distinct competitive advantage. It could assist them in meeting the growing capacity demands faster and making a significant positive contribution to the economy.