Utility Industry Labor Sourcing Strategy Cost Analysis

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.

Utility Industry Labor Sourcing Strategy Cost Analysis

Finding Quality Resources through Economically Feasible Means