This IDC study examines the market for U.S. utilities billing outsourcing and provides a forecast for 2004?2008. The competition for the few thousand North American utilities will continue to be intense. Mergers (such as Capgemini and TXU) may create the best of both utilities focus and outsourcing/systems integration expertise. However, established relationships that each of the leading players have already established with utilities may limit the strength of new partnerships.

"Business process outsourcers should avoid the trap of repeatedly customizing outsourcing solutions for each client," said Meredith Whalen, group vice president, U.S. Vertical Market Research. "This defeats the purpose of the economies-of-scale concept that is necessary to make the outsourcing model cost effective."