EDF extends IT outsourcing contract with Capgemini

Utilities company EDF Energy has extended its IT outsourcing contract with EDF by another two years through a ₤12m deal.

The deal, which was signed in 2010, sees Capgemini continue to provide a wide range of IT services to 20,000 EDF staff.

The service includes service desk provision, procurement and managed desktop services, including support for email, instant messaging and file-sharing.

EDF will benefit from Capgemini’s worldwide delivery model with 70% of the services being delivered onshore, supported by 30% of the staff located offshore. There are a total of around 150 Capgemini people working on this contract.

Gary Rowan, head of function, service management at EDF, said the outsourcing deal gives the company the flexibility to react to changing IT demand in the company.

 “Capgemini’s collaborative approach and commitment to flexibility were important in order to future-proof the company against developments involving additional services or user numbers, and in view off the EDF Energy investment programme in low-carbon generation,” he said.

Energy companies are entering a period of significant IT development with the government’s Smart Metering Implementation Plan (SMIP). It plans to install 53 million smart meters in homes and businesses across the UK, and aims to allow gas and electricity consumption to be monitored to provide information that will help consumers and businesses use energy more efficiently.

IT suppliers will provide the technology to underpin the ambitious project, making significant IT investments.

In 2013, analyst firm International Data Corporation (IDC) said Western European utilities are expected to spend $10.4bn on IT in 2013 – 62.9% of which will be dedicated to services.

The IDC Western Europe Utilities Industry IT Spending 2012–2017 forecast predicted software spending would see the most significant boom, growing 7.4% to reach $3.2bn by 2017.

IT services are expected to grow annually by an average of 4.9%, while IDC predicted minimal growth in the hardware sector, despite the drive for smart energy, which relies on sensor networks. IDC said the biggest spending area for utilities is the maintenance of IT systems and infrastructure, accounting for around 60% of companies' overall IT budget to ensure they are well positioned after smart meter implementations.

Last week Northern Ireland Electricity extended an IT managed services deal with Capita by another three years.