Water & Wastewater International - Demand for... -
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Published on: 4/1/2004
Last Visited: 6/4/2004
"The ascending willingness to utilise outside expertise is increasingly associated with the need to adopt more advanced technologies," says Mili Shah, a market analyst for Frost & Sullivan (http://www.environment. frost.com).For instance, old German utilities in their quest for operational efficiency are rebuilding their ageing infrastructure for which outsourcing is emerging as the favourable solution.
Amid these growing opportunities, large new contracts for asset management are now getting fewer by the year with many utilities increasingly preferring low-risk O&M contracts.This means that private sector delegation has already peaked or slowed down in some regions.As a result, many service providers are now reviewing past successes before undertaking new ventures.Those who still pursue big contracts face tough competition and eventually get less-substantial projects as first movers have already skimmed the cream of the market.
"The demand for outsourcing solutions is neither fully exhausted nor brimming with opportunities," says Mili Shah.