IT Optimisation at Municipal Utility Companies
Municipal utility companies have to adhere to new IT security requirements and are obliged to implement them within a short time-frame. New infrastructures and processes need to be established. In addition, many municipal utility companies have to contend with a high level of indebtedness, decreasing margins and the challenges posed by the Energy Transition policy.
A quick solution. It is, however, also an opportunity: It presents an opportunity to rethink the in-house IT system, and the solution is simple. External service providers also offer municipal utility companies, network operators and energy providers standardised solutions based on the infrastructure which is currently in place, promising to significantly reduce costs and create economies of scale. A clear advantage: New legislation and requirements imposed by the German Federal Network Agency can therefore be satisfied more quickly while keeping costs stable.
Outsourcing does not equal redundancies. It doesn’t mean that the in-house IT team will become unemployed, by any stretch of the imagination. Their remit will change, taking them away from the time-consuming and costly development tasks and focusing them more on managing the external service providers. In addition, they can focus on their own core skills and develop them.
How AXXCON can help with this. AXXCON supported a group of four municipal utility companies, which provide 200,000 businesses and households with energy. Business IT and accounting functions were combined into a Shared Service Center, which outsourced IT services to external providers. As a result, the IT and accounting functions both saw an improvement in effectiveness and quality, as well as cost savings of around 20 percent. Working in conjunction with the employees, new IT solutions were designed and the bidding process was managed.
The full technical contribution is published by the German magazine “Zeitung für kommunale Wirtschaft” (Edition 10/15)