Industry Analysts Predict Growth in Outsourcing of Customer Care by Utilities in 2002

Research analysts are heralding the outsourcing of services like billing and customer care as a critical path to profitability in todays uncertain utility market. Outsourcing offers a cost-effective alternative to customer care and business process management operations that can improve cash flow, customer satisfaction, and earning per share for electric, gas and water companies. ORCOM, the leading provider of outsourced customer care and billing services for the utilities industry is the first to address the specific needs of utilities and be managed by industry-experienced professionals.

Industry Analysts Predict Growth in Outsourcing of Customer Care by Utilities in 2002

ORCOM Offers Profitable, Long-Term Growth Solutions for Utility Companies
PHILADELPHIA, PA -- Feb. 12, 2002 -- Research analysts are heralding the outsourcing of services like billing and customer care as a critical path to profitability in todays uncertain utility market. Outsourcing offers a cost-effective alternative to customer care and business process management operations that can improve cash flow, customer satisfaction, and earning per share for electric, gas and water companies. ORCOM, the leading provider of outsourced customer care and billing services for the utilities industry is the first to address the specific needs of utilities and be managed by industry-experienced professionals.

In the midst of energy trading challenges, deregulation and increased M&A activity, utility companies are increasingly focusing on their basic operations in an effort to increase shareholder value. Managing basic business processes effectively is a good way to accomplish this," said Jamie Biddle, CEO of ORCOM. Utility companies should look to outsourcing functions like customer care and billing services as a way to increase operating efficiencies, reduce risk, cut infrastructure costs and focus on core competencies."

Analysts predictions for 2002: Utilities Return to Core Competencies
According to many research analysts, improving shareholder value requires utilities to focus on improving the bottom line and increasing quality of service and competitive agility. By focusing on delivering quality service to satisfied customers, utilities can successfully gain the competitive edge demanded by todays marketplace.

Analysts agree that the future of utilities lies in improved resource management and business process outsourcing. If ENRON has taught utilities anything, it is that even the largest companies can lose site of basic principles like delivering quality service to customers," said Dr. Zarko Sumic, Vice President of Energy Information Strategies at META Group. Utilities must focus on increasing quality of service to their customers and outsourcing customer care and billing business processes is a good way to prepare for a profitable future."

According to Gartner Groups Predictions for 2002 published this month, Outsourcing and trusted suppliers will take more control as capital spending reduces in favor of operating budgets." This is no surprise following Dataquests recent reports predicting exponential growth in the business process outsourcing area. According to Gartner, Worldwide, BPO services will grow from $207.7 billion in 1999 to $543.5 billion in 2004 [May 2000, Scholl] and outsourcing revenue will reach $101.6 billion in 2001, an 8 percent increase over 2000 revenue of $93.8 billion [Dec 2001, Caldwell]. By these expectations, ORCOM is well aligned for success via its business model, new messaging and overall focused approach to increasing market share.

ORCOMs service offerings include business process management (BPM), application management and infrastructure hosting. Outsourcing offers utilities a number of advantages including:
·   Reduced cost of operations: Orcoms outsourcing services typically save 20% to 40% as compared to utilities in-house operations
·   Improved customer care: Award winning call centers and support staff to respond to utility clients knowledgeably, quickly and effectively
·   Reduced risk : Orcom takes the technology pressure off utilities by maintaining responsibility for continual technology refresh
·   Scalability without major capital investment: Scalable infrastructure frees utilities to pursue growth plans, merger and acquisition strategies

About ORCOM

ORCOM is the leader in outsourced customer care and billing services to the utility industry, providing superior service, guaranteed service levels and significant cost savings. The company has leveraged its 25 years of experience into long term, high-value relationships by responding to the rising demand for flexible, low risk application hosting and business process management (BPM) services. With a track record of no failed implementations and a large customer base, ORCOM is uniquely positioned to lead utilities to the next level of profitability. For more information about ORCOM, call Jennifer Schenberg, 1-800-338-8233, ext. 2028 or visit www.ORCOM.com.