Dec 2011: New analysis from HfS Research, co-authored by ValueNotes, focuses on outsourcing and shared services strategies and highlights the gradual shift occurring in the energy & utilities (E&U) industry. The sector is evolving from large nationalized monopolies to smaller deregulated, privatized enterprises which are adopting outsourcing as a key strategy to overcome multiple business challenges.
Key findings in the report discuss the following market dynamics:
The energy & utilities industry is facing issues such as the pressing need to “go green”, the energy security issue, and most importantly, pressure to incorporate “smart grid” technologies and pursue new revenues of growth from a sluggish economy.
An increase in the level of deregulation in the industry has brought in competition for the older companies. Services are now offered at more competitive rates, and in order to increase profitability and revenues, outsourcing has emerged as a key solution.
The major factors that characterize the current industry are – an increased level in customer centricity and the adoption of new technology, dominated by the “Smart Grid” network. Companies are balancing strategies by focusing on end users, and increasing levels of automation and computerization in their services.
The service provider landscape features a range of vendors, ranging from end-to-end comprehensive solutions providers to relative newcomers offering horizontal services. The oldest players in this market offer BPO, ITO and consulting solutions for the industry.
The introduction of the “Smart Grid” has led to an enormous amount of unprocessed data. Thus data management has become crucial in the industry. Emerging outsourced services such as Meter Data Management and Data digitization are increasingly being offered by service providers. Companies are partnering with ERP solutions providers and smart meter manufacturers to offer system integration solutions for their clients. These services will revamp CIS systems, billing services and offer high value research and analytics solutions.
Trends such as these have been explored in the new HfS Research Market Landscape titled The Utilities Sourcing Landscape in 2011: Are Global Utilities Outsourcing Smarter? The study investigates industry challenges, segmentation, industry drivers, the major services outsourced, and a discussion of trends in outsourcing over the next few years. The report is appended with the HfS FormGuide, which offers buyers a quick way to identify and understand the providers operating within a particular market niche.