BP has awarded Infosys an IT services contract to provide application support and development to the oil company.
The deal will include IT services at BP’s main centres in Houston, Texas, and the UK, but will also as support locations including Azerbaijan, Angola, Brazil and Singapore.
BP is a large consumer of outsourced services across its business and its overheads associated with working with partners are substantial. BP does not consider taking IT in-house an option due to the company's size, global distribution and diverse business functions.
BP has a small group of IT services suppliers and it shares the work between them. Infosys is part of this group.
This was a strategy to cut costs. In 2008 it spent 65% of its $3bn annual IT budget with 3,000 suppliers bit by 2011 it outsourced to only seven and reduced its annual IT budget by $800m as a result.
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BP's suppliers attend an event every year known as the Captain’s Table. This is a mandatory week-long event where the CEOs of its IT suppliers are expected to gather for group meetings and one-on-ones with BP.
The event is aimed at improving collaboration in BP's supplier ecosystem. And with more and more businesses multi-sourcing their IT services, many industry commentators expect collaboration between suppliers to become increasingly important.
Infosys set up and invests in the Infosys Information Systems and Technology University, which provides training to Infosys engineers in industry knowledge, technology systems, BP processes and key applications.
Rajesh Murthy, global head of energy, communications and services at Infosys, said the company works closely with BP. “Winning this contract demonstrates how we have evolved as a supplier and continue to work collaboratively with BP across their range of activities.”