“Smarter” outsourcing set to increase in the global Energy & Utilities industry

January 3, 2012: 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 de-regulated, 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 de-regulation 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 by the service provider 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.

For more information, please contact:

ValueNotes: Sameer Murdeshwar | Research Analyst, ValueNotes | sameer@valuenotes.co.in | +91 20 6623 1797

HfS Research: Tom Ivory | Vice President, Client Services, HfS Research | tom.ivory@hfsresearch.com | +1 800-449-4206 ext 9

About ValueNotes

ValueNotes, based in India, is a leading provider of market intelligence and research, with expertise across industries. Our strengths lie in our analytical ability, industry expertise, and the research and data collection skills of our researchers and analysts. We have built strong capabilities in the collection, interpretation and analysis of data – including quantitative and qualitative research.

For more information about ValueNotes, please email bporesearch@valuenotes.co.in.

About HfS Research

HfS Research is the leading research analyst advisory firm covering global outsourcing and shared services strategies.

With 50,000 subscribers, HfS Research provides the most influential and frequently visited collaborative research network in the global services industry, providing rapid and insightful commentary, analysis and debate of enterprise outsourcing dynamics. The organization is unique because it integrates personable social networking with market research and advisory services.

HfS Research’s in-depth analysis covers business process outsourcing, information technology outsourcing, cloud business services, shared services and governance strategies, in addition to industry trends across financial services, manufacturing, utilities, energy, healthcare, pharmaceutical retail and media sectors. The firm’s service provider performance evaluations, pricing strategy assessments, market forecasts and sourcing best practices help multiple companies worldwide today.

Launched in 2007, HfS Research’s acclaimed blog Horses for Sources has more than 120,000 monthly visitors across the global outsourcing industry, and is widely recognized as the leading destination for collective insight, research and open debate of industry issues and developments. The HfS LinkedIn community is thriving, with more than 12,000 industry professionals sharing views and information daily. More information about Horses for Sources can be accessed at www.hfsresearch.com. The company can be followed on Twitter at www.twitter.com/horses4sources and LinkedIn by joining The BPO and Offshoring Best Practices Forum.

For more information about HfS Research, please email research@HfSResearch.com.

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