The utility giant E.ON has outsourced application services to Capgemini as part of a five year restructure of its IT services in a deal worth about €50m. For the E.On’s business information management and SAP ERP applications, the deal will see Capgemini provide application lifecycle services. From the E.ON to Capgemini, the work has already begun after the successful transition of the service from E.ON to capgemini. The Capgemini stated that the contract deepens its cooperation with the E.ON.
Like many utility companies out there, the E.ON are addressing calls for more smart metering services which require heavy investments in applications and software development. The case in the UK is that the government plans to put 53 million smart meters in homes and business in the UK by 2019 as part of its GB Smart Metering Implementation Program to reduce energy consumption. Yet it could face a major challenge over concerns about the safety of smart meters in the home and the potential invasion of privacy. This year, the utility companies in Western Europe will spend $10.5bn on IT of which over 62% will be invested in IT services.
The IT services spends $6.5 billion invested last year and it will continue to rise by 4.9% each year. The software investments will increase the most in the next five years, growing by 7.2% each year. The senior research analyst at IDC Energy Insights Gaia Gallotti said that, the need to reduce costs and achieve operational excellence together with the need to comply with the energy policies and regulation will continue to drive utilities ICT investments.
REFERENCE:
http://www.computerweekly.com/news/2240163345/EON-outsources-applications-to-Capgemini
