Energy & Utilities

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2023 Utilities Industry Trends

Decarbonization in the Utilities industry has become more than aspirational. The U.S. stimulus package and the Paris Agreement have worked together to force change in electricity generation. Many Utility CIOs are just beginning to understand the impact these changes will have on their strategies and roadmaps.

The growing trend toward electric vehicles (EVs) will accelerate and make Utilities scramble to maintain grid stability. The newly proposed EPA standards are a clear move to promote EV adoption. When the demand for fast charging grows beyond just a scattering of the existing EV charging stations, it will create huge draws on the grid. Unfortunately, this demand typically hits during current periods of peak demand, which further exacerbates the challenge.

An aging workforce and a wave of retiring experts will force Utilities to reconsider their service provider ecosystems. Co-sourcing is an approach that blends resources in agile delivery teams, but accountability will remain an essential requirement. Utilities will need to spend time in 2023 finding solutions and relationships that bridge agility and accountability.

Industry-specific Understanding & Best-in-Market Solutions

ISG has the industry knowledge and experience to advise utilities on cloud and agile digital projects, divestitures, mergers and acquisitions and more.

ISG can help you:

  • Rapidly reduce O&M costs in response to intense budgeting pressures
  • Re-imagine IT operating models to increase agility in the digital age
  • Find the right SI partner to manage new capital project implementations
  • Reconcile incompatible IT landscapes and service delivery models post-acquisition / divestiture
  • Design and source utility-specific vendor management solutions
  • Guarantee regulatory-grade benchmarks and provide expert testimony when required

Go digital with us:

  • Manage the risks of building new digital platforms
  • Increase agility and improve IT value during service agreements’ renewal periods and beyond
  • Ensure industry-leading digital experiences from your providers
  • Control the costs and risks of moving to cloud-based solutions

Ensure Regulatory-Grade Benchmarks

Many regulators put the onus on you to demonstrate that your costs are reasonable with outside benchmarks. When it comes to providing testimony as an expert witness for utilities, our competitors’ survey approach to data and benchmarking is not sufficiently dependable on the stand. At ISG, we do not collect benchmarking data through broad-based surveys, and we do not purchase data for benchmarking purposes. Instead, we provide:

  • Data from over 6,000 unique benchmarking assignments and from ISG’s proprietary database, including operational and financial data, key performance indicators (KPIs) and other performance measures
  • Benchmarks according to size, project scope and support function which use robust, repeatable methodologies and built-in data integrity and validation

Get visibility into the root causes of your gaps in performance and actionable recommendations to achieve the “right cost to serve.” Along with these key insights, ISG is experienced at testifying to our benchmarking methodologies and resulting studies in regulatory proceedings around the world.

Provider Research

ISG's full research report on the Utilities industry is a+60 pages, thorough comparison of needs, trends and providers in the industry. To access the full report and a complimentary briefing on it, contact us!

ISG Focal Points 2022 - Power and Utilities - North America - SP 2022-09-23 v1-1

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