THE ADVANTAGE OF OUTSOURCING

When evaluating the advantages and disadvantages of outsourcing operations and maintenance, it is essential to include the whole lifecycle in the analysis. Quick wins and

savings in operations and maintenance can become quite expensive in the long term, as any

savings achieved through lower fixed operational costs will be very quickly lost if compromised

maintenance and operations lead to even minor efficiency losses. Outsourcing enables the owner of the power plant to look into the level of future returns in terms of operational performance. Therefore, an asset management agreement is highly valuable from both a financial and a risk management point of view.