BP in deal to slash IT bill



Bill Goodwin

Oil company BP expects to cut its IT bill by £135m over the next five years after signing partnership deals with IBM and...



Bill Goodwin

Oil company BP expects to cut its IT bill by £135m over the next five years after signing partnership deals with IBM and SAIC.

IBM and SAIC will take over the management, support and hosting of BP's IT systems worldwide, in a deal worth about £170m to each company.

The move will allow BP to rationalise a huge array of legacy IT systems, including 5,000 software applications that have built up with the acquisitions BP has made over the years.

The deal will also lay the groundwork for BP to expand its e-commerce operations and develop Web-based services across the company.

"We will free management and technical resources from day-to-day support to concentrate on enhancing our digital capability," said John Leggate, BP's group vice-president for global digital business.

BP said the deal will let staff concentrate on the strategic development of IT systems, and allow the company to respond rapidly to changing technology.

The deal will impact about 450 IT jobs across BP worldwide, although many of the staff will be offered jobs with IBM or SAIC, BP said. Only a "small number" of UK staff will be affected.

BP is working to a tight timescale and hopes to transfer its IT systems to IBM and SAIC operation by the end of the year. Some of the IT systems will remain on BP premises, while others will be transferred to IBM and SAIC.

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