Abstract
This report provides an analysis of results of the annual IDC Vertical Market Survey covering France, Germany, Italy, Spain, and the U.K. Analysis is focused on the utilities industry and is based on 99 interviews carried out between August and November 2007.
The scope of this study is to understand IT budget spending distribution and patterns evolution, channel selection, and satisfaction with primary IT suppliers among utility enterprises in Western Europe. This report is one of a series of studies including the analysis of enterprise and vertical solution adoption and investment plans.
"Survey data demonstrates that utilities in Western Europe appear to have a positive outlook for the near future and expect to either increase or keep their IT budget unchanged (41% and 45% respectively). Only less than 14% declare that they will decrease it," said Roberta Bigliani, EMEA research director, Energy Insights. "43% of utilities plan to increase their external IT spending. In terms of budget allocation, Energy Insights expects cost-cutting initiatives to continue, and increase will mainly be around routine infrastructure upgrades. This proves that despite interests in newer technologies, utilities are still focused on their backbone systems."
Table of Contents
- Table of Contents
- Energy Insights Opinion
- In This Report
- Methodology
- Definitions
- Utilities Industry
- Survey Respondent Profiles
- Table: Western Europe, Utilities, Respondent Company Distribution (% of Companies)
- Table: Western Europe, Utilities, Survey Respondents Profile by Functional Area and Country (% of Companies)
- Table: Western Europe, Utilities, Survey Respondents Profile by Job Title and Country (% of Companies by Country)
- Table: Western Europe, Utilities, Survey Respondents Profile by Location and Country (% of Companies)
- SiTuation Overview
- IT Budget Distribution Patterns
- Infrastructure Upgrades Lead Spending Among Utilities
- Figure: Western Europe, Utilities, Current Distribution of IS Operating Budget Among Spending Areas (% of IS Operating Budget)
- Table: Western Europe, Utilities, Current Distribution of IS Operating Budget Among Spending Areas (% of IS Operating Budget)
- Very Even Split Between Internal and External Spending
- Figure: Western Europe, Utilities, Current Distribution of IS Operating Budget Between Internal and External Spending
- Table: Western Europe, Utilities, Current Distribution of IS Operating Budget Between Internal and External Spending (%)
- IT Vendors Selection
- Utilities Rely on External Consultants
- Figure: Western Europe, Utilities, Use of External Consultants/Third Parties to Support IT Decisions (% of Respondents)
- Figure: Western Europe, Utilities, Type of External Consultants/Third Parties Supporting IT Decisions (% of Respondents)
- Figure: Western Europe, Utilities, Scope of Involvement of External Consultants/Third Parties to Support IT Decisions (% of Respondents)
- Figure: Western Europe, Utilities, Satisfaction with External Consultants/Third Parties (Rating 1 to 4)
- Primary IT Vendor' s Characteristics Sought After by Utilities
- Figure: Western Europe, Utilities, Level of Importance of Criteria for Choosing Company' s Primary Supplier
- The Gap Between Selection Criteria and Utilities' Satisfaction
- Figure: Western Europe, Utilities, Level of Satisfaction with Company' s Primary Supplier
- Figure: Western Europe, Utilities, Level of Importance for Choice of Primary IT Vendor Against the Satisfaction Rating of Primary IT Supplier' s Performance
- Decision-Making Process: The Role of the CIO and Other Departments
- Figure: Western Europe, Utilities, Business Functions' Role for the Level of IT Budget
- Figure: Western Europe, Utilities, Business Functions' Role for the Implementation/Enhancement of Important IT Solutions
- Figure: Western Europe, Utilities, Business Functions' Role for the Selection of a Vendor or a Brand of Important IT Solutions
- IT Budget Distribution Patterns
- Future Outlook
- Positive Outlook Dominates Utility Firms in Western Europe
- Figure: Western Europe, Utilities, Today' s Business Outlook by Subindustry (% of Respondents)
- Table: Western Europe, Utilities, Today' s Business Outlook by Subindustry (% of Respondents)
- Stability Leaning on Positive Sweeps Western Europe Utilities' IS Budget Expectations
- Figure: Western Europe, Utilities, Expected Change in IS Operating Budget in the Next 12 Months (% of Companies)
- Table: Western Europe, Utilities, Expected Change in IS Operating Budget in the Next 12 Months (% of Companies)
- Infrastructure Upgrades Will Still Get the Majority of Attention
- Figure: Western Europe, Utilities, Expected Change in IS Operating Budget in the Next 12 Months by Spending Area (% of Companies)
- Table: Western Europe, Utilities, Expected Change in IS Operating Budget in the Next 12 Months by Spending Area (% of Companies)
- External IS Budget to Experience a Positive Change
- Figure: Western Europe, Utilities, Expected Change in the Next 12 Months in the Share of External Spending (% of Companies)
- Table: Western Europe, Utilities, Expected Change in External Share of IS Operating Budget in the Next 12 Months (% of Companies)
- Web-Enablement Initiatives are Increasing
- Figure: Western Europe, Utilities, IS Operating Budget and Web-Enablement Initiatives Share by Subindustry (%)
- Figure: Western Europe, Utilities, IS Operating Budget and Web-Enablement Initiatives Share by Country (%)
- Primary Source of IT Products and Services: System Integrators and Consultants Lead but not in Terms IT Spending
- Figure: Western Europe, Utilities, Primary Source of IT Products and Services Over the Next 12 Months (% of Respondents)
- Figure: Western Europe, Utilities, Expected IT Budget Breakdown by Source Over the Next 12 Months (% of Total External IT Budget)
- Figure: Western Europe, Utilities, Expected Changes in IT Budget Breakdown by Source Over the Next 12 Months (% of Respondents)
- Utilities' Approach Towards Innovation in IT Adoption
- Figure: Western Europe, Utilities, Approach Toward Information Technology (% of Respondents)
- Main Areas of Focus Among Utilities
- Top 3 IT Focus Areas in the Near Future
- Figure: Western Europe, Utilities, Main Areas of Organization' s IT Focus During the Next 12 Months (% of Respondents)
- Utilities' Leading Business Initiatives
- Figure: Western Europe, Utilities, Leading Business Initiatives to Support IT Decisions
- Utilities' Urgent Issues
- Figure: Western Europe, Utilities, Importance of Key Items
- Essential Guidance
- Actions to Consider for Utilities
- Actions to Consider For IT Vendors
- Learn More
- Related Research
- Synopsis
