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Case study Company name: BP plc
Major oil and gas company, British Petroleum plc (BP), increases the strategic value of its Procurement organization when it engages in a "Capability Accelerator Program" designed to quickly develop high-level procurement skills with a unique combination of coaching, structured group learning and e-Learning, all delivered on demand by IBM Global Business Services. |
Business need | BP projected on-going significant merger and acquisition activity. To allow a continued focus on core operations and competencies and to reduce costs, BP adopted a strategy to outsource non-core operations. |
Solution | BP and IBM have enjoyed a very positive relationship for over 10 years, supporting activities in distinct BP European and North American business segments. Starting in 1996 IBM became the co-supplier for Accounting and Financial support for the European Refining and Marketing Business. IBM's solution delivered lower costs and in 2000, IBM was selected as the sole supplier for the BP European and Marketing business operating in 10 Countries. The relationship was recently extended through 2011. In 1999, BP selected IBM for a 10 year outsourcing contract for Accounting and Financial Support and SAP I/T support of BP's North American upstream business processes, Gas and Power and some Corporate functions. IBM currently supports 20 financial process areas in the Americas. This relationship was recently extended through 2013. |
Results The following achievements were recognized as a result of the IBM solution: - The IBM services scope continues to evolve and scale to BP’s transforming business model and volumes which has grown from a geographic to a global model. Over 1600 people currently support the scope in a three tier delivery model.
- Through initiatives such as global sourcing and process re-engineering, IBM has increased quality, while reducing BP's costs.
- Process standardization, common systems platforms, and global resourcing have enabled BP to aggressively pursue their Global Financial Infrastructure framework strategy as well as geographic Centers of Excellence.
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Customer testimonial | “As BP looks to the future, striving to achieve further infrastructure and overhead cost reductions, IBM is proactively providing solution options based upon leading-edge products and technologies.” Dennis Evans, Americas Regional Controller, BP |
Customer information | BP plc | | BP has transformed from a local oil company into a global energy group employing more than 96,000 people and operating in over 100 countries worldwide. |
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