BP outsources SAP to IBM in five year deal

Oil giant contracts IBM to manage applications, service desk

By Denise Dubie | Network World US
Published: 04:00 GMT, 03 September 09

IBM has inked a five-year outsourcing deal with British Petroleum to manage the oil giant's enterprise applications and integrated service desk operations.

BP awarded Big Blue the largest among many contracts it is currently doling out to service providers, worth £1.5 billion over five years. IBM's deal displaces a previous arrangement BP had with Accenture to outsource its entire SAP environment.

Under the deal, IBM will provide application development and application maintenance (ADAM) services for BP, with the directive to simplify processes, improve service quality and enable strategic partnership for the oil company.

"We see a significant opportunity to simplify and standardize BP's work processes while leveraging IBM's world class expertise in this area and their strong knowledge of the Oil and Gas industry," said Dana Deasy, BP Group CIO, in a statement. "This contract will enable BP to reduce complexity, whilst lowering our overall cost base."

IBM Global Business Services will also manage BP's SAP applications, including enhancements at client sites and from IBM's network of delivery centers, according to a press release. IBM representatives could not disclose the financial details of the contract.

IBM points to its application management services (AMS) expertise and its global delivery network as strengths against competitors such as HP EDS in the outsourcing market, and IDC recently rated IBM as the leader in application outsourcing.

BP has rationalised its outsourcing contracts from 40 service providers to five in a total contract value of £1.5 billion (US$2.5 billion) over five years, £500 million lower than BP had budgeted for the contract. Along with IBM, three Indian outsourcers - Wipro, Infosys Technologies, and Tata Consultancy Services - have been selected by BP. IBM has bagged the largest among the contracts.

John Ribeiro contributed to this article.

What are your views on this subject? Use the form below to post a comment on this article up to 500 characters.

Characters remaining: 500

Related SME news

Intel investor wants company bosses to pay fines

Top execs should pick up $2.7 billion antitrust tab

20 November 2009

IBM makes brain simulator more complex than a cat

Computer brain has 1 billion neurons and 10 trillion synapses

Microsoft co-founder diagnosed with cancer

Paul Allen suffering from non-Hodgkin's Lymphoma

Lawsuit claims HP PCs are 'inherently defective'

Claimant says HP desktops lock up every time

Related SME reviews

Fujitsu Lifebook T5010

Dell Vostro 320 all in one PC review

Intuit Quicken Premier 2010 software review

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Database security: Preventing enterprise data leaks at the source

IDC discusses the growing internal threats to business information, the impact of government regulations on the protection of data, and how enterprises must adopt database security best practices...

Download Whitepaper

Service-oriented security

SOA has become an integral part of enterprise software by providing a framework to efficiently develop software as services that is easily sharable, reusable, and integrated. No where is the need more apparent than in the Identity Management space. Welcome to the age of Service-Oriented Security (SOS).

Download Whitepaper

Data protection prospective vendor checklist

Organisations need a way to map business needs against all these challenges in procuring a technical solution. To help, SANS has developed the following Prospective Vendor Checklist.

Download Whitepaper

Unlock the power of the mainframe

This whitepaper presents the notion of CICS as an integration hub based on a component-based, service-oriented architecture supporting Web services. Highlights will review the challenges and contrasted support for Web services natively in CICS.

Download Whitepaper

Techworld UK - Technology - Business

COLT White Paper

Are all VoIP services the same?

Questions to ask your service provider to ensure you get the VoIP service you need
With careful choice of partner, your business can have all the advantages of VoIP access - reduced costs, flexibility and simplicity - without the drawbacks.
This white paper is your guide to ensure you get right the VoIP service and details the pitfalls which businesses would do well to avoid.

Download white paper
BMC

Ride the express lane in the journey to speed ITIL adoption

Explore the challenges in making the journey to ITIL and the criteria for selecting consulting services
By following ITIL practices, your IT organisation will become more closely integrated with the business. We recommend making the journey to ITIL in a sequence of six incremental steps, the phases of which are driven through execution of a strategic transformational roadmap.

Download white paper

Webcast: IT Financial Management: Cost Optimisation for Efficiency and Agility.
On Demand Webcast
Join this webcast to learn about the techniques and technologies that can help you prove the value of IT to the business by understanding the true cost of today's IT services and those that will be necessary to deliver future success.

Register Today

Site Map

IDG Network

* *