Energy & Utilities

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2023 Energy Industry Trends

With 2022 behind us, the early months of 2023 are seeing a continuation of increasing energy prices and persistent inflation. The energy transition has been placed in “high gear” by public sector funding and supply chain pressures have continued.  CIOs are under pressure to adapt and change as never before. 

For Utility companies, it is all about the squeeze on O&M combined with the need to support, with technology, the immense pressure to assure grid stability during this time of change.

For Oil & Gas (O&G) companies, record profits were recorded in 2022, providing substantial earnings and board approval to fund their strategies in 2023. And while O&G companies recognize world issues in the geopolitical and macroeconomic environments, focus and importance continues to be on transitioning to cleaner energy in the long term.  We expect continued acceleration of digital transformation and re-visiting business models that drive growth and focus on renewables.  Cybersecurity, engineering technology, cloud adoption and data analytics will be the main IT drivers in 2023 and extend into 2024.

ESG is an important topic for Oil and Gas companies as it is with all participants in the Energy space.  ISG is seeing a shift from shareholder to stakeholder focus with higher expectations for transparency and accountability from more stakeholder groups.

Chemicals, Metals & Mining industry have experienced headwinds due to higher energy costs around the world along with their customers destocking inventories due to economic concerns.  Despite the economic concerns, we are seeing continued investments in digital transformations, data analytics and enhanced hyperscaler/cloud computing initiatives. Operational efficiency will be among the focus areas which will influence the need for OT solutions.

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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.

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