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This report presents the findings from a survey of 149 utilities regarding their approach to Information and Communications Technology (ICT) procurement. The survey investigates the way that utilities like to purchase technology, as well as the major IT and business objectives influencing their IT investment strategies.
Introduction and Landscape
Why was the report written?
To highlight the criteria on which utilities select their ICT providers as well as the roles which have influence while making ICT purchasing decisions.
What is the current market landscape and what is changing?
Amidst increasing competition, utilities are focusing on strengthening their core ICT infrastructures and streamlining their operations in order to reduce costs and achieve differentiation in the market.
What are the key drivers behind recent market changes?
Utilities are increasingly dependent on IT products and services to drive automation and improve customer satisfaction to remain competitive in the market.
What makes this report unique and essential to read?
Kable Global ICT Intelligence has invested significant resources in order to interview CIOs and IT managers about their IT Procurement. Very few IT analyst houses will have interviewed 149+ ICT decision makers in the utilities industry in H2 2012.
Key Features and Benefits
Provides insights into utilities' preferred buying approaches.
Comprehend the business objectives that utilities are looking to achieve through their IT investment strategy.
Appreciate the IT objectives that utilities are looking to achieve through their IT investment strategy.
Understand the factors that are influencing utilities' decision to select an ICT provider.
Understand which organizational roles influence ICT purchasing decisions and signing off budgets.
Key Market Issues
The vast majority of utilities surveyed prefer purchasing technologies directly from suppliers, followed by local and national resellers.
Utilities are looking to streamline their operations in order to improve efficiency and increase productivity, and thereby meet fast changing customer expectations.
According to Kable's survey, utilities rate the objective of 'better demonstrate the value of IT to the business' as their most important IT objective influencing their IT investment strategy, with an average rating of X on a scale of 1 to 4.
Utilities consider 'leading-edge technology' and 'price' to be the most important criteria when choosing an ICT provider.
Kable's survey reveals that that a large proportion of utilities believe that their ICT infrastructure is somewhat complex, whilst at the same time the number of respondents who state they have very complex ICT infrastructures is also high.
According to Kable's survey, percentage of respondents expecting their ICT spending to remain flat is likely to decline by 4% to 34% in 2013, while the percentage of utilities expecting a slight increase in their ICT spending grows from 32% to 34% over the same period.
Utilities will continue to invest in innovative applications to drive automation and enhance their competitiveness, with 91% of respondents planning investments in this space in the next two years.
Cloud computing adoption is set to rise, with 77% of respondents having plans to invest in this space in the next two years.
Although a majority of utilities prefer to deploy their IT solutions on-site, deployment of technologies as a hosted service is gaining prominence with X% of respondents preferring this model.
CIOs are the most influential entities while devising the IT investment strategy in utilities. The survey respondents rate the influence of CIOs as the highest for any ICT purchasing decision, with an average rating of X on a scale of 1 to 4.