Indian utilities to spend $448 mn on IT by 2018: IDC

IT spending by utility firms in the country is expected to increase to USD 448 million by 2018, growing at an average CAGR of 4.16 per cent, research firm IDC said today.
The spending, which stood at USD 368 million in 2014 across hardware, software and services, will be focussed on deploying cloud technology, improving service levels, driving agility and standardisation.
IT investments by utilities companies remain focussed on delivering cost savings and efficiency gains, but change is in the air, IDC said in a statement.
These changes are reflected in the role of IT among utilities organisations, which are increasingly focussed on strategic imperatives of enhancing security, social media engagement and managing and consolidating data sets, it added.

"The utilities sector is conservative but changing rapidly as organisations respond to a wave of disruptors, most critical is changing customer expectations.
"In the near term, the most important focus of digitisation is in customer engagement - through social networking, mobility and online engagement," IDC Head (Asia Pacific Energy Insights and Vertical Markets) Emilie Ditton said.

The transparency and control that digital initiatives will deliver across operations will be the basis of competitive differentiation and enable cost savings and revenue growth, enabling utilities to compete in this changing market, she added.
"The utility sector in India has adopted change -- as Indian energy companies move from paper and manual processes to adopting third platform technologies such as automation, cloud infrastructure to drive mobility, data integration, CRM and more automated metering approaches," IDC India and South Asia Associate VP Insights and Consulting Shalil Gupta said.

However, energy sector utilities facing stiff competition are also increasingly grappling with the dynamics of rapid urbanisation, electrification of rural areas and extending investments in sustainable energy.
In commensurate measure, investments in infrastructure, smart grid, and managing risk and security are particularly important challenges that government-owned network operators in India are facing and that are driving their priorities, he added.