Ovum has published a research report in August 2011, which looks at the outsourcing trends in the Utilities industry.
Ovum is a research institute which provides clients with analysis to enhance the business decisions. Ovum is very famous for its best research analysis, which provides practical and accountable solutions to various business sectors. The latest study conducted by Ovum focuses on the strategy taken by the utility industry to outsource services.
As per the research report, firms in the utilities industry are seeking the support of IT companies in certain functions like application maintenance and back office activities. IT firms are focusing on providing infrastructure support services.
The utilities firms are availing the service of the IT sector from a long time, but the recent trend suggests their increased affinity towards outsourcing their IT operations to third party firms.
The research report discusses various reasons on why they see a positive trend for outsourcing in Utilities industry. Prime reason attributed for this is the spiralling cost. The findings also states that the firm can enjoy competitive advantage by outsourcing the services as they can operate at better efficiency and higher margins.
More over the report says that, firms are now more focused on getting better technology support to run their operations. Hence they are keen to outsource the IT operations to expert firms. More over utilities firms believe that any cost saving could help them to invest in their infrastructure further.
Ovum research report concludes that outsourcing has many positive aspects for the sector as a whole. However the report also throws light on risk involved in this like data loss and operational issues. Hence firms should look for right outsourcing partner with the right domain knowledge and technology capabilities. Once utilities firms can put in right control measures to ensure these operational flaws and data loss, they are in for enjoying benefits on cost savings and better operational efficiency.
Report concludes that outsourcing will enhance the future growth potential of the Utilities industry with better economics and provide the sector with immense benefit like superior technologies as well as better operational efficiency.