A `hands-on´ or `hands-off´ approach in electricity distribution; outsourcing of business processes in a HRM perspective

Outsourcing is fundamentally an answer to the question `Do it ourselves or buy it in?´ for electricity utilities. It can be defined as employing an outside agency, company or contractor to manage a function formerly carried on inside an electricity utility. Handing over the planning, management and operation to the outside third part depends on the type of outsourcing. The relationship is normally regulated by a contract, with an agreement that specifies the performance acquired and the related economic circumstances. The rationale for outsourcing is that no company can be effective in solving all tasks. Outsourcing enables the companies to increase efficiency, reduce costs and focus on core business. In this paper, the author examines an outsourcing approach to the human resources management function in a power distribution utility