chapter  5
8 Pages

Why Outsource?

Competitive pressures are becoming more severe in the global economy. Most products, including those that once relied on a craft approach, such as beer, can increasingly be made anywhere in the world. Senior management have to work hard to demonstrate that they are serious in any energy management programme, whether it be in house or outsourced. In many large, multinational organisations there is an inherent tension between central, head office support staff and on-site operational people. Central staff, particularly in functions such as energy buying, which in many companies is now organised on a pan-European basis, are keen to demonstrate their effectiveness, sometimes by seeking to buy pan-European energy and energy efficiency deals. Energy outsourcing has most often been undertaken in a tactical way, aimed at achieving tactical results, and this can lead to under-performance, disappointment and total failure.