Energy & Utilities Tushar Seth Industry Overview Companies that provide energy products, including crude oil, natural gas, and refined petroleum; utility services, including the generation of electricity, the transmission and distribution of electricity, natural gas, and water; and/or the marketing and trading of energy commodities. Energy & Utilities o o
o
o o o
o
o
Alternative Energy Sources Electric Utilities Electric Power Distribution Electric Power Transmission Fossil Fuel Power Generation Hydroelectric Power Generation Nuclear Power Generation Energy Trading & Marketing Energy Exchanges Retail Energy Marketing Wholesale Energy Trading & Marketing Independent/Merchant Power Production Natural Gas Utilities Oil & Gas Exploration & Production Oil & Gas Exploration Services Oil & Gas Field Equipment Oil & Gas Field Services Oil & Gas Well Drilling Royalty Trusts Oil & Gas Refining, Marketing & Distribution Fuel Oil Dealers Liquefied Petroleum Gas Dealers Petroleum & Petroleum Products Wholesalers Petroleum Bulk Stations & Terminals Petroleum Refining Oil & Gas Transportation & Storage
Crude Petroleum Pipelines Natural Gas Gathering & Processing Systems Natural Gas Pipelines Refined Petroleum Pipelines Utility Services Water Utilities Wastewater Treatment Water Distribution
o o
The link is provided for each of the above mentioned sub-domains and more information can be gathered by clicking on them.
Market Overview: Major IT Drivers affecting the domain o Global Players: IBM Microsoft Accenture Oracle SAP Cap Gemini Deloitte o Indian Players TCS Infosys Wipro CTS HCL Patni Computers The challenges faced are: • Consolidation • Deregulation • New Technologies • Competitive pressures • New customer service demands
Major players in the Domain: •
Exxon Mobil Corporation *
• • • • • • • • •
BP p.l.c. * Shell Oil Company Duke Energy Corporation Halliburton Company Chevron Corporation Siemens AG Enron Creditors Recovery Corp. Tyson Foods, Inc. Comverge, Inc.
* The IT spending of these players was extremely difficult to find out, hence the link is provided on the name of each and every player which leads to the company profile and all the relevant details could be found out there.
Offshoring utility-related revenue has grown 119% from 2004 to 2005 for the top 5 offshore vendors. Energy Insights and IDC expects the use of offshore firms to continue to grow at a fast pace as utility companies overcome their perceived risks of engaging with offshore vendors. As with any other outsourcing initiative, companies considering use of offshore firms should do a formal readiness assessment, define performance benchmarks and set a baseline, and establish a well-articulated governance framework.
My Analysis: The work of IT in energy & utility sector has moved to offshore locations to reduce costs and channelize the focus on core processes of the companies. Hence, a lot of offshore resources are provided by offshore service firms in the utility industry. The work done at the offshore locations is more of the back office work that can be achieved by customizing the softwares for the clients.
References: http://www.hoovers.com/energy-&-utilities/--HICID__1258--/free-ind-factsheet.xhtml http://www.idc.com/EI/getdoc.jsp?containerId=EI203426 http://emea.idc.com/getdoc.jsp?containerId=IDC_P571 http://www.forrester.com/Research/Document/Excerpt/0,7211,33984,00.html www-05.ibm.com/no/partners/idc/