06 Aug 2019

New IDC MarketScape Evaluates Worldwide Digital Transformation Service Providers for Utilities

LONDON, August 6, 2019 — Utilities across the world are radically transforming their businesses. Technology is changing how energy is produced, transported, consumed, and conserved. Customers are not just raising their expectations; they are taking an active role in energy markets. New business models are emerging. As maturity builds through experience and experimentation, utilities are developing a clearer vision of digital transformation (DX) as a journey that goes beyond mere digitization. It is not only about applying new technologies to old processes, but about using digital to evolve the business, adding new business models and revenue streams, as well as carving efficiencies out of the core operations, with data as the pillar of innovation.

The new IDC MarketScape: Worldwide Digital Transformation Service Providers for Utilities 2019 Vendor Assessment (IDC #EUR144397319, July 2019) evaluates leading service providers by performing a qualitative and quantitative assessment of their capabilities and strategies regarding their digital transformation offering to the utility sector across all value chain segments. The report evaluates 17 vendors: Accenture, Atos, Capgemini, CGI, Cognizant, Deloitte, DXC Technology, EY, HCL, IBM, Minsait (an Indra company), Infosys, NTT DATA, PwC, Tata Consultancy Services, Tech Mahindra, and Wipro.

"The emergence of new business models, the need to optimize operations, as well as competition from new entrants, will keep utilities on their toes for years when it comes to digital transformation," said Phevos Skalidis, research manager, IDC Energy Insights. "More than in any other business transformation, success in digital transformation hinges on selecting the right partner ecosystem, and business and technology service providers are quintessential to this ecosystem."

Looking at the services vendor ecosystem, IDC Energy Insights finds that:

  • Demand for DX guidance — from planning to execution — is growing among utilities, and DX services have become more mature across many services providers. Service providers have developed packaged offerings that consistently apply data-centric technologies and innovation accelerators to utilities' customer experience (CX), operational excellence, and business transformation use cases.
  • Vendor services around DX often combine with a wide variety of IP assets, ranging from digital technology platforms to software solutions, frameworks, methodologies, and domain blueprints to transform their customers' business and IT operations.
  • Over the past few years, many vendors considered in this IDC MarketScape have lined up a portfolio of technology-led, creative-led, business-strategy-led, and industry-led capabilities. Many, for instance, have integrated a digital agency and developed networks of innovation labs. Few, however, can roll these four types of capabilities into a consistent, industrialized offering.
  • Digital agencies, in particular, are used to help utilities understand, influence, and service their end customers, both business to consumer (B2C) and business to business (B2B). They now regularly feature in the toolkit used by the service vendor community to support utility customer-facing functions, from marketing and communications to sales, customer service, and product/service management.
  • DX is one of the areas in which service pricing has evolved the most. Some vendors have introduced sophisticated performance-based pricing, with output- and outcome-based models in lieu of classic time-and-materials and fixed-price arrangements. Co-development and co-innovation arrangements are also increasingly commonplace.

For more information about this study or to arrange a one-on-one briefing with an IDC Energy Insights analyst, please contact Kanupriya at +44-2089877111 or kanupriya@idc.com.

About IDC MarketScapes

The IDC MarketScape  vendor analysis model is designed to provide an overview of the competitive fitness of IT, telecommunications, or industry-specific suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor's position within a given market. IDC MarketScapes provide a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT, telecommunications, or industry-specific vendors can be meaningfully compared. The framework also provides technology buyers with a transparent foundation to enable companies to independently compare the strengths and weaknesses of current and prospective vendors.

About IDC Energy Insights

IDC Energy Insights assists energy businesses and IT leaders, as well as the suppliers that serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the utility and oil and gas industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a wholly owned subsidiary of IDG, the world's leading technology, media, research, and events company.