Outsourcing and Service Performance in an Urban Electricity Distribution Utility: Evidence from DESCO Customer Survey (2011) and Secondary Indicators (2013–2025)

Electricity distribution utilities in South Asia increasingly rely on outsourcing to improve service quality, reduce operating costs, and accelerate digitization. This study examines outsourcing in Dhaka Electricity Supply PLC (DESCO), using (i) a structured field survey conducted in 2011 among electricity consumers (n=430) across 12 Sales and Distribution (S&D) divisions and DESCO officers (n=32), and (ii) an update of key utility performance and financial indicators from secondary sources covering 2013–2025. The survey assessed perceived effects of outsourcing on meter reading accuracy, bill distribution timeliness, complaint handling, administrative cost reduction, and profitability. Bivariate regression/ANOVA tests indicate statistically significant associations between outsourcing and several service process outcomes, including actual meter reading (p<0.001), timely bill distribution (p<0.001), reduced consumer complaints (p<0.001), and quicker complaint handling (p<0.001). Perceived improvements were also significant for capital and overhead cost reduction, office space reduction, and net profit improvement (p<0.05). However, perceived effects on accountability and use of e-governance software were not statistically significant in the 2011 sample (p>0.80). Secondary indicators show DESCO achieved low system loss (~5.62%) and expanded prepaid metering (≈583,805 meters), while reliability improved compared with early 2010s but remained volatile by 2021–22 (SAIDI 455.25 minutes; SAIFI 22.02). Financial disclosures reported consecutive net losses in FY2022–23 to FY2024–25, with losses narrowing markedly in FY2024–25. Taken together, the findings suggest outsourcing can improve operational processes when paired with strong contract governance, but sustainability requires explicit accountability mechanisms and risk management.