Australian Utilities Go Digital to Meet Multiple Challenges

Rhea-AI Summary

Power and utilities companies in Australia are embracing new technologies, such as data analytics and machine learning, as they undergo digital transformations. The sector is facing pressure from population growth, urbanization, changing weather conditions, and increased competition. Utilities are investing in automation, cloud infrastructure, grid modernization, and IoT systems. However, the increasing complexity and cyberattack risks pose challenges. The report also highlights the growing deployment of microgrids and the transition to electric vehicles in Australia's power and utilities industry.

Traditionally conservative sector overcomes inertia, adopting new technologies as energy needs, consumer expectations and regulations change, ISG Provider Lens™ report says

SYDNEY--(BUSINESS WIRE)-- Power and utilities companies in Australia are increasingly deploying new technologies, especially data analytics and machine learning (ML), as they undergo large-scale digital transformations, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2023 ISG Provider Lens™ Power and Utilities — Services and Solutions report for Australia finds the country’s utilities, which had long resisted change, are now making investments and engaging with provider partners to deploy more intelligent, data-driven systems in response to changing regulations, customer expectations and market needs.

“Digital transformation is no longer a choice for Australian utilities,” said Michael Gale, ISG partner in Australia. “After several years of upheaval, new technology adoption has become the next wave of disruption in the industry.”

The sector is under pressure from several trends, ISG says. Population growth, urbanization and changing weather conditions are triggering energy scarcity, while some fuel costs have risen. Traditional utilities face competition from new market entrants, while consumers expect an improved, omnichannel customer experience.

New technology investments in the industry span a wide range of initiatives, the report says. Many utilities are increasing automation, taking a holistic business process management (BPM) approach to streamlining operations. They are making substantial investments in cloud infrastructure to replace legacy in-house systems and focus on their core competencies. Grid modernization, aimed at improved resilience, security and sustainability, is a major priority.

Adapting to these changes while maintaining legacy IT infrastructure has led to increasing complexity, forcing utilities to invest in IoT systems and integrated, cloud-based enterprise asset management, ISG finds. This transformation makes more data available to generate valuable insights through ML-powered analytics, often with help from service providers.

Further heightening the pressure, increasingly connected systems in Australian power grids have broadened the scope of potential cyberattacks, making it harder for utilities to manage risks, the report says. New regulations require critical infrastructure companies to strengthen cybersecurity.

“Even a relatively small cyberattack on a utility can threaten social and financial stability,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Experienced service providers are helping Australian utilities overcome a cybersecurity skills shortage to build essential protections.”

The report also explores other trends in the Australian power and utilities industry, including the growing deployment of microgrids in remote regions and the gradual transition to electric vehicles.

The 2023 ISG Provider Lens™ Power and Utilities — Services and Solutions report for Australia evaluates the capabilities of 30 providers across five quadrants: Intelligent Business Process Management Systems (iBPMS), Next-Gen IT Services, Grid Modernization, Enterprise Asset Management (EAM) and Customer Information Systems (CIS) and Customer Experience (CX).

The report names Accenture, Infosys, TCS and Wipro as Leaders in all five quadrants. It names Capgemini and IBM as Leaders in four quadrants each. HCLTech is named as a Leader in two quadrants. Acquire BPO, Probe CX, Tech Mahindra and WNS are named as Leaders in one quadrant each.

In addition, Tech Mahindra is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. PSC and WNS are named as Rising Stars in one quadrant each.

The 2023 ISG Provider Lens™ Power and Utilities — Services and Solutions report for Australia is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230807315640/en/

Press:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What technologies are power and utilities companies in Australia adopting?

Power and utilities companies in Australia are adopting new technologies such as data analytics and machine learning (ML) as part of their digital transformations.

What are the challenges faced by the power and utilities sector in Australia?

The power and utilities sector in Australia is facing challenges such as population growth, urbanization, changing weather conditions, increased competition, and cyberattack risks.

What investments are utilities making in the industry?

Utilities are making investments in automation, cloud infrastructure, grid modernization, and IoT systems to streamline operations and improve resilience, security, and sustainability.

What trends are highlighted in the report for the Australian power and utilities industry?

The report highlights the growing deployment of microgrids in remote regions and the gradual transition to electric vehicles in the Australian power and utilities industry.

Which companies are named as leaders in the report?

Accenture, Infosys, TCS, and Wipro are named as leaders in all five quadrants. Capgemini and IBM are leaders in four quadrants each. HCLTech is a leader in two quadrants. Acquire BPO, Probe CX, Tech Mahindra, and WNS are leaders in one quadrant each.

What is the availability of the report?

The 2023 ISG Provider Lens™ Power and Utilities — Services and Solutions report for Australia is available to subscribers or for one-time purchase on the provided webpage.