The Asia/Pacific power sector is on the cusp of significant change, with three central themes driving this progressive evolution within the industry: decarbonization, digitalization, and decentralization. An increasingly complex and demanding environment is developing with the emergence of distributed energy generation, integration of renewable energy sources, and changing customer expectations. The utilities industry is navigating a shifting landscape, with countries now implementing government-mandated clean energy goals and ambitious net-zero targets. These changes are driving the adoption of new technologies and accelerating digital innovation to generate cleaner energy, meet the rising demand, improve grid resilience, and meet customer expectations.
Utilities companies are increasingly investing in digital capabilities and integrating a digital roadmap as part of their wider business strategy, which not only helps them adapt to changing business needs and generate new revenue streams but also drives innovation at scale.
International Data Corporation (IDC) recently published a new MarketScape report that evaluates leading digital transformation (DX) service providers for utilities in the region. The report, IDC MarketScape: Asia/Pacific (Excluding Japan) Digital Transformation Service Providers for Utilities 2022 Vendor Assessment, evaluates Accenture, Capgemini, EY, IBM, TCS, Tech Mahindra, and Wipro by performing a qualitative and quantitative assessment of their capabilities and strategies with respect to their DX offerings to the utilities industry across the value chain.
“The emergence of new business models, changing customer expectations, and growing renewable investments are demanding new technological capabilities and digitalization across the business,” says Jayesh Verma, senior research manager, IDC Asia/Pacific Energy Insights.
“Although a few countries (such as Australia) are making measurable progress in their digitalization efforts, the utilities industry in the region requires a focused approach in developing a clear vision. Having a well-defined DX roadmap is essential, as is selecting the right service provider and partner ecosystem,” adds Verma.
This IDC MarketScape aims to provide insights into service providers’ capabilities and strategies that are specifically designed to support the DX needs of utilities companies in the APEJ region. With respect to DX, IDC Energy Insights finds:
- DX services are maturing across the vendors, and service providers are offering solutions to support their clients’ digital needs from customer transformation, business transformation, and workforce transformation to information transformation.
- Vendors have developed their own platforms, frameworks, methodologies, solutions, and IP assets to support the DX needs of utilities companies and help them transform business and IT operations.
- DX service providers are investing in research and development (R&D) and innovation labs to build better solutions and drive innovation across technologies, such as augmented reality (AR)/virtual reality (VR), IoT, artificial intelligence (AI)/machine learning (ML), mobility, robots, and quantum computing.
- Some vendors are collaborating with start-ups, universities, and a wide array of partners to drive innovation.
- Organic and inorganic investments are growing to develop new talent and skill sets; and acquisitions to strengthen their product and service portfolio are bolstering vendors’ abilities to offer state-of-the-art services for utilities organizations
This study is focused on the Asia/Pacific (excluding Japan) (APEJ) region and aims to support utilities in choosing their partners in their digital transformation journey. It provides context for utilities evaluating vendors in this area, examines vendors’ comparative success in the marketplace, and looks at how vendor offerings will evolve. The evaluation is based on a comprehensive and rigorous framework that assesses vendors relative to the criteria and highlights the most influential factors for success in this market, both in the short and long term.