The economic downturn has impacted the Energy sector significantly. Capacity shortage across the value chain has raised the price of crude, gas and refined products. Companies face pressure from regulators, demanding customer expectations, rising SG&A expenses and a wave of mergers and acquisitions.
Energy Companies are under pressure to improve shareholder value and address challenges of energy security and sustainability. Given the changes in the geopolitical, environmental and economic scenario, there is increased pressure on the industry to improve shareholder value, and address challenges related to energy security and sustainability. It has resulted in a movement to remote areas for exploration, and outsourcing of non-core activities and operational excellence initiatives. Energy companies can outsource more processes/ functions and reduce the number of contractors.
Utilities are one of the most asset-intensive industries. The most critical business issues faced by the Industry are improving customer retention, cross-selling in existing markets and capitalizing on opportunities in emerging markets. Aging workforce is also a concern since the existing knowledge within the workforce is the key to organizational sustainability. Utilities need to continuously improve operating efficiencies to deliver better and faster results at a lower cost.
Utilities can outsource non-core activities such as IT, Finance & Accounting, customer service and supply chain management to ensure reliable service with a variable cost structure. Outsourcing can help companies improve collections and increase process automation.
AMI and Meter Data Management implementation enable Utilities to improve customer reach and realize benefits of improvised billing, better customer service and most importantly demand response.