Energy and utility industries to up IT spending by 5%

Although spending on IT outsourcing services in the energy and utility industry is slightly down this year, META Group expects to see growth in 2005, according to preliminary results of its annual energy and utility industry IT spending study. As many as 38% of study participants indicated they expect to see increases in outsourcing in the future, with cost reduction cited as the key business driver.

The study also finds that in the absence of a major external driver, such as deregulation, IT spending in the energy and utility industry will remain relatively constant for the short term, with only 5% growth in IT spending as a percentage of revenues in 2004 compared to 2003. The average IT spending per customer remains flat at $50, as does average spending per employee ($13,764).