BC Hydro (Vancouver, British Columbia) and Accenture (Vancouver) have signed a 10-year, US$1.45 billion agreement designed to save BC Hydro customers CAN$250 million and expand Accenture's ability to offer customer relationship management, IT, human resources, financial, procurement services, building and office management services to utilities across North America.

“This agreement makes it possible for BC Hydro to continue delivering the world-class customer care our ratepayers expect, while at the same time significantly reducing our costs and dramatically increasing our operational efficiency,” said Larry Bell, chair and CEO of BC Hydro.

Accenture will form Accenture Business Services of British Columbia limited partnership, with more than 1500 former BC Hydro employees. BC Hydro will become the first customer of Accenture Business Services of BC, outsourcing its customer services (including the development of a new customer information system), IT services currently provided by Westech, network computing services, HR services, financial systems, purchasing, and building and office services.

“Utilities throughout North America are under pressure to reduce costs while improving the level of service they provide to customers, all in an increasingly competitive business environment,” said Mary Tolan, chief executive of Accenture's Resources Group. “Accenture Business Services of BC will become the cornerstone of our ability to offer clients an immediate opportunity to reduce costs and receive a higher quality of services in a number of important areas of their business.”

North American utilities currently spend approximately $58 billion annually on the non-core services that Accenture will offer and Accenture Business Services of BC will deliver.

“Accenture is committed to building a world-class operation in British Columbia that will contribute to the province's economic growth and provide employees with expanded career opportunities,” said Dave Seibel, country managing director of Accenture Canada. “The BC Hydro employees who will move to Accenture Business Services of BC bring with them valuable knowledge and skills in all the areas of service we will offer. With this agreement, Accenture now has 3800 employees in seven Canadian cities: Vancouver, Edmonton, Toronto, Mississauga, Ottawa, Montreal and Fredericton.

The process began with a Request for Expressions of Interest, which BC Hydro solicited from the private sector in October 2001. In April 2002, after BC Hydro reviewed 19 proposals, it announced that the discussions had narrowed to Accenture. The final terms of the agreement were reached after a negotiation and due diligence process that began on July 18, 2002. Accenture Business Services of BC will begin operations this spring.
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