Energy & Utilities

Tushar Seth
Industry Overview

Companies that provide energy products, including crude oil, natural gas, and
refined petroleum; utility services, including the generation of electricity, the
transmission and distribution of electricity, natural gas, and water; and/or the
marketing and trading of energy commodities.

Energy & Utilities

o Alternative Energy Sources

o Electric Utilities
 Electric Power Distribution
 Electric Power Transmission
 Fossil Fuel Power Generation
 Hydroelectric Power Generation
 Nuclear Power Generation
o Energy Trading & Marketing
 Energy Exchanges
 Retail Energy Marketing
 Wholesale Energy Trading & Marketing
o Independent/Merchant Power Production
o Natural Gas Utilities
o Oil & Gas Exploration & Production
 Oil & Gas Exploration Services
 Oil & Gas Field Equipment
 Oil & Gas Field Services
 Oil & Gas Well Drilling
 Royalty Trusts
o Oil & Gas Refining, Marketing & Distribution
 Fuel Oil Dealers
 Liquefied Petroleum Gas Dealers
 Petroleum & Petroleum Products Wholesalers
 Petroleum Bulk Stations & Terminals
 Petroleum Refining
o Oil & Gas Transportation & Storage
  Crude Petroleum Pipelines
 Natural Gas Gathering & Processing Systems
 Natural Gas Pipelines
 Refined Petroleum Pipelines
o Utility Services
o Water Utilities
 Wastewater Treatment
 Water Distribution

The link is provided for each of the above mentioned sub-domains and more
information can be gathered by clicking on them.

Market Overview:

Major IT Drivers affecting the domain

o Global Players:
 IBM
 Microsoft
 Accenture
 Oracle
 SAP
 Cap Gemini
 Deloitte
o Indian Players
 TCS
 Infosys
 Wipro
 CTS
 HCL
 Patni Computers

The challenges faced are:

• Consolidation
• Deregulation
• New Technologies
• Competitive pressures
• New customer service demands

Major players in the Domain:

• Exxon Mobil Corporation *

 • BP p.l.c. *
• Shell Oil Company
• Duke Energy Corporation
• Halliburton Company
• Chevron Corporation
• Siemens AG
• Enron Creditors Recovery Corp.
• Tyson Foods, Inc.
• Comverge, Inc.

* The IT spending of these players was extremely difficult to find out, hence the link
is provided on the name of each and every player which leads to the company
profile and all the relevant details could be found out there.

Offshoring utility-related revenue has grown 119% from 2004 to 2005 for the
top 5 offshore vendors. Energy Insights and IDC expects the use of offshore
firms to continue to grow at a fast pace as utility companies overcome their
perceived risks of engaging with offshore vendors. As with any other
outsourcing initiative, companies considering use of offshore firms should do
a formal readiness assessment, define performance benchmarks and set a
baseline, and establish a well-articulated governance framework.

My Analysis:

The work of IT in energy & utility sector has moved to offshore locations to
reduce costs and channelize the focus on core processes of the companies.
Hence, a lot of offshore resources are provided by offshore service firms in
the utility industry. The work done at the offshore locations is more of the
back office work that can be achieved by customizing the softwares for the
clients.

References:
http://www.hoovers.com/energy-&-utilities/--HICID__1258--/free-ind-factsheet.xhtml
http://www.idc.com/EI/getdoc.jsp?containerId=EI203426
http://emea.idc.com/getdoc.jsp?containerId=IDC_P571
http://www.forrester.com/Research/Document/Excerpt/0,7211,33984,00.html
www-05.ibm.com/no/partners/idc/