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7 September 2004 - Although spending on IT outsourcing services in the energy and utility industry is slightly down this year, META Group expects to see growth in 2005, according to preliminary results of its annual energy and utility industry IT spending study. As many as 38% of study participants indicated they expect to see increases in outsourcing in the future, with cost reduction cited as the key business driver.
The study also finds that in the absence of a major external driver, such as deregulation, IT spending in the energy and utility industry will remain relatively constant for the short term, with only 5% growth in IT spending as a percentage of revenues in 2004 compared to 2003. The average IT spending per customer remains flat at $50, as does average spending per employee ($13,764).
"Companies are setting their IT budgets to align with customer and employee levels," said Rick Nicholson, vice president and director of META Group's Energy Information Strategies (EIS) service. "Work and asset management systems, EMS/SCADA systems, energy trading and risk-management systems, and wholesale market operations systems are all showing moderate growth."
The final results of META Group's annual energy and utility IT spending study will be reviewed at its eighth annual Energy Information Strategies 2004 Conference & Technology Showcase, Sept. 20-22, in Atlanta, Ga. The conference provides participants with the insightful, in-depth, actionable business and IT guidance necessary to satisfy the challenging new set of requirements facing today's energy business and IT executives.
META Group's EIS service is a comprehensive research and advisory service aimed at meeting the needs of the energy industry. Staffed with a team of highly experienced industry analysts, the service delivers sound, unbiased guidance to energy company business and information technology leaders, energy technology vendors, and other industry players. By studying the entire energy industry, while leveraging research generated by META Group's other advisory and consulting services, EIS provides unparalleled advice to clients on issues vital to their business.
For more information about META Group's Energy Information Strategies conference, visit www.metagroup.com/events.
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