In 2009, two of the UK’s largest energy companies, EDF Energy and British Energy, came together in a merger worth over £12 billion.
Under the name of EDF Energy, the two firms now produce around a quarter of the UK’s electricity, employing nearly 20,000 people across the country and supplying gas and electricity to 5.5 million businesses and homes.
Gilles Chauveau was chief operating officer of EDF Energy at the time. When he looked at the IT organisation of the combined company, he saw the need for a drastic overhaul.
“There was a heterogeneous sourcing landscape of internal and external suppliers, with no consistency between the two companies,” Chauveau said at Gartner’s recent Outsourcing and Strategic Partnership conference. “Some of the contracts were five to seven years old and had been through several extensions without competition.”
Meanwhile, the relationship between IT and the business was poor. “We had an ‘IT kingdom’ type of governance system,” Chauveau, who is now EDF Energy’s CIO, says. “We had only IT people around the table making major decisions around IT sourcing, and the rest of the business was kept out.”