Case study

BP

Reducing telecommunications costs by over $100 million per year

Following the merger of BP and Amoco Corporation, there was a need to harmonize business processes across the merged organization. One of the areas that needed to be addressed was the strategy for the outsourcing of non-core services. The IT leadership team of the merged BP Amoco realized that rapid and decisive action to align the two companies and eliminate overhead would be key in meeting stakeholders' expectations and vision of global success.

PA Consulting Group helped BP Amoco to reduce telecommunications running costs by over $100 million per year, by placing all BP Amoco's core managed telecommunications services under the control of a single managing entity.

The resulting $650 million, five-year outsourcing contract covers management and provision of core voice, data and video conferencing services to the BP Amoco Group. It delivers a number of financial and operational benefits to BP Amoco's businesses and, most importantly, positions the company to rapidly exploit its e-commerce initiatives.

Peter Dudley, Group Telecommunications Director at BP, said: "PA's role was pivotal in achieving these innovative changes. Their pragmatic win-win approach to outsourcing helped us to overcome many stumbling blocks."