The FINANCIAL — European utilities continue to be under significant pressure to reduce Capex and Opex related to ICT. CIOs are facing significant challenges in determining where to make the most effective budget allocations, according to IDC.
On one hand, CIOs are expected to undertake new initiatives to deliver business value. On the other, they are challenged to reduce the expenditure related to routine IT activities, especially reducing maintenance and employee expenses. IDC Energy Insights latest annual survey of European utilities revealed that European utilities have made their IT operations more efficient, effectively bringing down costs, favoring the allocation of IT budget for growth.
"IT departments are being asked to do more with less, as lines of business become increasingly demanding. CIO agendas are continuing to shift from focusing on IT productivity to focusing on business productivity as CIOs move from managing portfolios of systems and technologies to portfolios of services," said Gaia Gallotti, research manager, IDC Energy Insights. "Utilities therefore have to balance their investments in IT solutions that are needed to run the business and comply with demanding regulation, also taking into consideration a number of obstacles, including aging infrastructures, increasing security threats, exponential increases in data, and a steady rise in demand," Gallotti added.
Discussion about this post