BYPL: INSOURCING VS. OUTSOURCING

摘要

In 2014, BSES Yamuna Power Ltd. (BYPL), an electricity distribution company in New Delhi, was facing a peculiar dilemma: The company had consistently been facing financial losses since its inception. While this could have been easily managed by setting a tariff that would reflect the costs incurred by the company, BYPL was unable to do so due to the highly regulated nature of its business. The only route available to the company was therefore to try to reduce its costs. While most of its costs could not be controlled, some of the company's operation and maintenance expenses could.