Moving from Electrical Contractor to 'Specialised O&M Managed Services Partner' for Power Distribution Franchisees

Mr. Gagan Aggarwal, MD,
Creative Entrepreneurs

Utilities are heavily driven by outsourcing of products and services, but most times, their integration is limited by lack of strong Service Level Agreements (SLAs) and vendor management practices. The new private operators usually start dealing with several products and contractors, and already
scarce Management bandwidth gets occupied in monitoring and renegotiating contracts and performance. The key question here is – can organized vendors be developed with more end-to-end managed services for these new PPPs?

Recently, pManifold team spoke with Mr. Gagan Aggarwal, MD, Creative Entrepreneurs (CE). The company has 30+ years of experience in providing Turnkey EPC and O&M services for Power and Water utilities. The interview focuses upon 'What new business models need to emerge for such managed services that have performance-linked contracts?' The below shared are the author's personal views and not to be associated with any of his company's and other associations.

IUKAN Session 3 Proceedings: Strategizing Vendor Management – Collaboration, Innovation, and Integration

Utilities are heavily driven by outsourcing of products and services, but most times, their integration is limited by lack of strong SLAs and vendor management practices. The new private operators usually start dealing with several products and contractors, and already scarce Management bandwidth gets occupied in monitoring and renegotiating contracts and performance. Strong vendor management should be a key point for private players taking over power distribution.

The key question here was

1. Can organized vendors be developed with more end-to-end managed services for these new PPPs?
2. What new business models need to emerge for such managed services that have performance-linked contracts?