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How Is Outsourcing Fueling the Oil & Gas Industry?

May 2011

HOW IS OUTSOURCING FUELING THE OIL & GAS INDUSTRY?
Authors
Esteban Herrera, COO, HfS Research Reetika Joshi, Contributing Analyst, BPO Strategies, HfS Research

Executive Summary
The oil and gas industry is, arguably, the most economically important sector in the world as it meets more than twothirds of the global energy demand. This industry has been facing challenges such as declining production, rising consumption, and low reserves. The focus of the industry is now on cost containment as the global economy emerges from the recent financial crisis. As a result of the current scenario, there are opportunities for service providers in this domain to offer industry-specific solutions across the entire oil and gas value chain. The major points of discussion related to outsourcing in the utilities industry, as discussed in this report, are mentioned below:

» Key challenges facing the industry include high price volatility for oil products, a shortage of talent, aging
infrastructure, and constantly changing compliance requirements. Increased activity in the upstream segment is adding to the high capital costs of oil exploration projects. There is constant pressure to maintain profit margins and enhance shareholder value in the downstream segment.

» Cost containment is the biggest driver for outsourcing. Other benefits include increased efficiency, fewer errors,
better relationships with suppliers and vendors, and a greater use of technology for exploration and refining, leading to lower costs.

» Popular outsourced services include energy trading and risk management (ETRM), supply chain management,
enterprise asset management, ERP platform integration, IT Infrastructure, and retail automation solutions. Interspersed with these services are horizontal type offerings such as Finance and Accounting, and Human Resource outsourcing. An increased focus on engineering has entered the outsourcing space with services such as product design and automation for both upstream and downstream companies.

» Major industry trends include companies moving towards a digitally integrated oilfield set-up which involves
collating all data from various sources onto a common platform, a slow changing focus towards alternative sources of energy such as bio-fuels, and a renewed interest in energy trading in order to reduce risks and increase efficiency in trading options.

© 2011, HfS Research, Ltd | www.hfsresearch.com

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How Is Outsourcing Fueling the Oil & Gas Industry? May 2011

Table of contents
Oil and gas industry review
The global picture Key industry challenges

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Building a case for outsourcing
Cost – a driving factor Easing price volatility issues Meeting training needs for the new workforce Infrastructure upgrades Addressing policy compliance Key takeaways

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Current outsourcing scenario in the energy industry
Types of oil and gas companies Popularly outsourced services in the oil and gas industry Latest deals

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Key Service Providers
Major industry trends Moving toward the digital oilfield era Diversification into renewable sources of energy Energy trading is back in the limelight

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Appendix About the authors About HfS Research

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© 2011, HfS Research, Ltd | www.hfsresearch.com

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and then to distribution terminals. from the geological aspects to the latest technologies involving offshore drilling techniques. which process barrels of crude oil. The oil and gas industry has its origins in the late nineteenth century. services. marine and service segments are also commonly referred to as the midstream segment. HfS Research divides the industry into five segments: » Upstream: The upstream segment involves the exploration and production of oil and natural gas. including port operations. with the first oil wells in Russia. This short report focuses on this industry. and the United States. and maritime fire fighting. and the transportation of the final products to service stations and retail outlets. which still constitutes the bulk of the global energy market. diminishing reserves. meaning that these two markets go hand in hand. HfS Research. refining and manufacturing. The discovery of oil in the Middle East and other parts of the developing world quickly transformed this sector into an internationally critical industry. and design engineering support for exploration. including extraction of fuel. Worldwide. refining and other operations. Europe. More than two-thirds of the global energy demands are met by this industry. » Downstream: The downstream segment includes the major refineries. The pipeline.com 3 . infrastructure and development projects depend on oil and gas. © 2011. as the diagram below illustrates. oil tankers.hfsresearch. Energy is a generic term for all industries involved in the production and sale of energy. which moves crude oil and natural gas from exploration points on land and platforms in the ocean to refineries. » Service and supply: This segment covers the companies that provide equipment. » Marine: The marine segment involves all aspects of transportation of petroleum and natural gas by water. Ltd | www. drilling. supplies. and controlling operating costs. and distribution.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Oil and gas industry review The oil and gas industry is facing the challenges of rising demand. » Pipeline: This segment covers the pipeline network.

In spite of all the imports. and Venezuela. © 2011. This has led to increases in oil imports. In the US. Governments around the world own and control the majority of oil resources. which results in significant geopolitical importance. after Russia and Saudi Arabia.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Exhibit 1 Segments of the oil and gas industry Source: HfS Research. Saudi Arabia. Since peaking in the late 1980s. the US has seen gradually declining domestic oil production. New Mexico. Mexico. 2011 The global picture The Middle East dominates proven reserves of oil and gas. oil production comes from a mix of land and offshore locations. with more than two-thirds of the world’s current reserves. Nigeria. Major imports come from Canada. and California. The second largest producing region is North America. Texas. Oklahoma. followed by Africa. The greatest exception is the US.com 4 .hfsresearch. where private landowners play an important role and receive the royalty payments that flow to governments elsewhere. Ltd | www. while land production is dominated by Alaska. and has fostered increasing concern about the security of energy suppliers. The major offshore fields lie in the Gulf of Mexico. HfS Research. the USA remains the third largest producer of oil. and South America.

refineries. is possibly the third largest known oil reserve.com 5 . As the infrastructure wears down. there is constant pressure to maintain profit margins and enhance shareholder value. A large part of the infrastructure has not changed much for the last few decades. Limited educational opportunities and a relatively unskilled labour supply are resulting in a huge skill gap in the human capital requirements for these companies. OPEC is an intergovernmental organization of twelve developing countries which constitute major oil exporters. both in oil wells onshore and offshore oil rigs. such as investment banks and hedge funds – outside the oil industry – has made these trends harder to predict. and in gas well into this century. Adding the recent severe economic downturn to the picture. Other fields have been discovered in the Irish Sea. and other hydrocarbons. Petrobras. controlling costs has become a major challenge for the industry. involving high capital costs. The most recent major find. » Talent shortage: The imminent retirement of close to half the industry workforce over the next decade has added a new area of concern for oil and gas companies. Unlike. and the uncertainty regarding its future make this industry arguably the most influential market on a global scale. the world production of crude oil. such as refineries. there is an urgent need to retire and replace these components with newer assets.hfsresearch.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Almost all of the UK’s oil and gas production comes from offshore. and may even prompt them to join the “Organization of the Petroleum Exporting Countries” (OPEC). Lack of documentation and © 2011. owing to the enormous asset size and complexity of the equipment in the field. The UK is the fourteenth largest producer of oil in the world. and it is estimated that the world’s oil reserves are being depleted at a rate of 2. The national oil and gas company. Key industry challenges The global dependency on oil and gas. and in the English Channel. west of the Shetland Islands. This will eventually lead to Brazil joining the list of major oil exporters. Increasingly speculative behaviour by influencers. Ltd | www. Other challenges for the industry include: » Price volatility: Constantly fluctuating prices in the international energy market make it extremely difficult for management in these companies to forecast sales figures and manage profitability targets. the UK oil and gas industry has been self-sufficient since the 1980s. declining crude production. Even more challenging though. with more than 350 oil fields in the North Sea region. As of 2010. In recent years. It is expected to remain self-sufficient in oil until 2016. The production capacity is expected to reach its peak by 2014. and low reserves. » Aging oil and gas infrastructure: The energy industry is heavily dependent on large amounts of physical assets. » Uncertain energy policy: Constantly changing government regulations and compliance requirements in conducting overseas business complicate matters for energy companies.1 percent a year. natural gas. the USA. Processes in these companies are inflexible and still not fully automated. Growing demand for oil and gas is leading to increased activity in the upstream segment. and this is resulting in larger and more complex projects such as oil wells. started pilot pumping in 2010 and is expected to reach full-scale extraction by 2013. is the younger workforce’s lack of interest in the industry. drilling rigs. its increasing importance powering all levels of the economy. and IT systems. the industry has been characterized by rising consumption of oil products. Some energy analysts say that oil price trends can no longer be explained simply through supply and demand. was 87 million barrels a day. In the downstream segment. yet there’s a need to be global in execution. and processing plants. Companies are increasingly investing in training and knowledge management activities to help transfer knowledge to the younger generations entering the industry. HfS Research. which occurred off the coast of Brazil in 2008.

increased efficiency. Cost is managed very differently in the upstream vs. downstream businesses. The benefit of this offset will allow companies to concentrate their hiring and training needs on the core engineering and production workforce requirements. In mature areas such as IT. to find an outsourcing solution that meets the needs of both sides of the business. Here. This will allow various centers and departments across geographies to capture and disseminate information effectively. of course. to help the next generation of workers learn from past experience. and automate them using process models. companies are now looking at the second phase of streamlining their business processes. After implementing industry standard ERP platforms. To prepare for a possible shortage in quality talent. and generally reducing risk in a business that is all about risk. the value proposition of outsourcing has to be about speed. © 2011. Major benefits include lower costs. and HR. Meeting training needs for the new workforce It is estimated that as much as 50% of the energy workforce will retire by 2017. and an overall lack of agility can pose huge risks towards making operational changes at high costs. organizations have started to document existing business processes and tasks. F&A. HfS Research. effectively mitigating some of the risk caused by the energy workforce shortage. Downstream. Building a case for outsourcing We’ve outlined how oil and gas companies are facing serious challenges in gearing up for the next generation in their industry. and back office billing can be offset by outsourcing to low cost locations in partnership with trusted service providers. The challenge is.com 6 . Ltd | www. understand and capture best practices from their retiring workforce. These non-core functions such as human resources. Easing price volatility issues To mitigate the effects of uncertain prices.hfsresearch. companies are transferring some of their core business processes onto an online global model. making fewer mistakes. Global process design and implementation is a challenge for an industry that has been notoriously decentralized with vehemently independent business units. the entire back office budget is like a rounding error. reduce exploration costs and improve the safety of operations. finance and accounting services. there is constant margin pressure and business units are usually happy to capture the “natural” savings from outsourcing. such as labor arbitrage and improved effectiveness/efficiency of business processes. Cost – a driving factor Cost containment remains the biggest challenge for most companies. shorten their learning curve. This involves collaboration with technology-led service providers to implement integrated digital field management systems. greater use of technology for exploration and refining. and share ideas and innovative methods to improve business. The global model will also allow companies to analyse and forecast trends in this volatile market. fewer errors. mainly due to post-recessionary effects and rising capital costs. the outsourcing industry can ease the pain of the retirement crunch just by supplying competent professionals to replace the retiring boomers. Given the capital expenditure required in the upstream business. but it is a challenge that outsourcing providers can help address.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 process repeatability. and better supplier/vendor relationships. Let’s explore how outsourcing can ease the growing pains for a large section of the market. whereby all the processes are aligned across all locations. The result is an interesting new set of offerings that service providers are working on. which will help improve production.

and increase profitability in the long run. the service provider will be responsible for managing processes across all locations for compliance tracking and regulations monitoring. and expand components. to customer delivery models. » Key industry challenges include high price volatility. including IT setup and managing third-party relationships. greater use of technology for exploration and refining. Key takeaways » The oil and gas industry is one of the most important sectors. and the EU IPPC Directive are some of the many regulatory issues that oil and gas companies are facing. Service providers are increasingly helping the industry predict and prevent financial and environmental risks with services such as compliance management and permit management. talent shortage. replace.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Infrastructure upgrades Service providers are identifying areas within the current infrastructure setup to upgrade. Once implemented. marine. ISO 14064. Applying for permits and monitoring the progress of implementations can involve high costs. and better supplier/vendor relationships. They will also help optimize the application processes for obtaining various licences and permits needed as per local rules and regulations. HfS Research. » Production capacity of oil is expected to reach its peak by 2014 and it is estimated that the world’s oil reserves are depleted at a rate of 2. Addressing policy compliance The constant changes to the increasingly complex local and international energy policies can hamper growth for oil and gas companies. While oil and gas companies retain ownership of all hardware. Ltd | www. aging infrastructure. downstream. » Major benefits of outsourcing include lower costs. pipeline. and uncertain energy policies. Lean and agile operational methods are forcing companies to invest in sleeker and more efficient infrastructure setups.com 7 . fewer errors. software and physical assets. the Clean Air Act. and service and supply. These areas cover everything from system upgrades. which will reduce process leakages. to new equipment deployment. Regulations such as the Kyoto Protocol. Enterprise architecture platforms are being developed to effectively maintain and protect valuable capital infrastructure.1 percent a year. which forms the core foundation of this industry. © 2011. » There are five segments in this industry – upstream. service providers are responsible for running all infrastructures.hfsresearch. This model of collaboration helps energy companies increase their efficiency and lower maintenance costs. as more than two-thirds of the world’s energy demands are met by this industry.

non-state-owned energy companies.9 2.com 8 .8 2. Ltd | www.2 3. and a snapshot of the latest outsourcing deals signed in this market. also called supermajors.hfsresearch. Chevron Corp.3 Saudi Aramco National Iranian Oil Company Petroleos Mexicanos Iraq National Oil Company ExxonMobil BP CNPC (PetroChina) ADNOC (Abu Dhabi National Oil Company) Kuwait Oil Company Petroleos de Venezuela Source: HfS Research. » International Oil Companies (IOC).5 2. Major NOCs include Saudi Arabian Oil Company (ARAMCO) and Petrobras. popularly outsourced services. ConocoPhillips Company (USA). fully or majority owned by a national government. in Brazil.2 © 2011. ExxonMobil Corp. are the six largest.5 2. (USA).5 2. 2011 Saudi Arabia Iran Mexico Iraq USA UK China UAE Kuwait Venezuela 2.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Current outsourcing scenario in the energy industry This section discusses the various types of companies in the oil and gas space. Types of oil and gas companies The global oil and gas market comprises two broad categories of companies: » National Oil Companies (NOC). (USA).3 2. Royal Dutch Shell plc (Netherlands-UK). The supermajors include BP (UK). HfS Research. Exhibit 2 Largest energy companies by crude oil output Company Country Output (barrels per day.3 2. million) 8. and Total SA (France).

Popularly outsourced services in the oil and gas industry Services outsourced in this industry mainly cater to all three segments – upstream.com 9 .hfsresearch. Major providers are looking to service all components of the oil and gas industry value chain. midstream. Ltd | www. and downstream.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Exhibit 2 shows that the largest companies are dominated by NOCs. Ironically. Exhibit 3 Popular outsourced services across the oil and gas value chain Source: HfS Research. The increasing criticalities of price volatility and complexities of energy policies have added domain consulting services to the outsourcing landscape. There is a strong element of engineering and product design mixed with ITO and BPO solutions. which account for only 23% of the world’s oil reserves. The remaining 77% lies in the hands of state owned National Oil Companies. with just ExxonMobil and BP representing the IOC category. 2011 © 2011. the moniker “Big Oil” refers to publicly listed IOCs. HfS Research.

Ltd | www. procure to pay. Oil and gas companies are looking to standardize and streamline their applications and processes across a single network globally rather than have multiple systems and services in different locations. compensation and benefits. An increased focus on engineering has entered the outsourcing space with services such as product design and automation for both upstream and downstream companies. application development. and the increasing emphasis on technology and innovation. access efficient means of gas distribution. the management of pipelines for natural gas is gathering popularity among service providers. The discussion on outsourcing in this industry would not be complete without mentioning the support offered by IT companies and the role they play as systems integrator. Companies involved in distribution are seeking help from service providers to select storage units.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Service providers are adopting a global delivery model to ensure an integrated end-to-end network of operation centers with a range of BPO and ITO services. training development. The purpose of ETRM is to minimize risk in the entire energy trading process cycle. has created demand for services such as ERP installation and maintenance. order management. The enormous scale and size of the oil and gas companies. © 2011. The need to upgrade and expand infrastructure has added services such as equipment design. an important emerging solution is Energy Trading and Risk Management (ETRM). » IT applications and infrastructure outsourcing. and design-automation support. piping and layout design. and data support. and by integrating all trading related data with the company’s enterprise and supply chain solutions. as part of the overall product design services. and speeds up the entire decision making process for energy trading activities. HfS Research. » Human resources and learning – Performance management. » Back office services – Clearance and settlements. in addition to business consulting support. operations support. and help in procuring distributors for the companies. Among industry-specific services.com 10 . This reduces any error scope which may happen due to manual intervention. In the midstream segment. control and instrumentation. working capital management. The horizontal services include: » Finance and accounting – Order to cash.hfsresearch. This is done by ensuring complete coordination between the decision makers and the trading process.

HfS Research. duplication of quality checks) with inappropriate load balancing (idle time due to varied time requirement of process steps) leading to bottlenecks in productivity Infosys implemented lean technology to identify all the non value added steps in the process. a leading Oil and Gas company wanted to revamp their purchase order management (POM) creation process for materials and services. Group Allocation methodology was then used to reduce the service queue and avoid load imbalance in the POM process As a result of this partnership.hfsresearch.g. the company cited the following as some of its benefits:  13 of the 20 steps were identified as non value added steps and eliminated  Efficiency enhancement of over 100% leading to lower investment costs and order creation assets  Savings of USD 791. 2011 © 2011. These steps were then either automated or merged with other links to shorten the overall process. Ltd | www.com 11 .How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Case study: Infosys provides POM solutions to a leading Oil and Gas major Business challenge The client. Their existing system had multiple non value adding steps (e.000 per year Solution Benefits accrued Source: HfS Research.

2005 Accenture Talisman Energy Source: HfS Research. July. 2009 BP IBM – Manage enterprise applications and integrated service desk operations. Infosys. Exhibit 4 Latest oil and gas outsourcing deals Date signed Service provider IBM. T-Systems – Manage data center support. 2011 © 2011. 2008 T-Systems. 2007 HP-EDS Total SA Tenure: 4 years Value: $8 million Tenure: 10 years Value: $140 million January. 2008 PWC Kuwait Petroleum Corporation Royal Dutch Shell Manage supply chain and logistics support.com 12 . Tenure: 5 years Value: NA September. HfS Research.hfsresearch. AT&T. March. TCS. Tenure: NA Value: NA Tenure: 5 years Value: $12 million Tenure: 5 years Value: $4 billion September. EDS – Manage desktop and helpdesk support. Provide HR support for administrative and employee benefits. Manage finance and accounting services and back office finance operations. Wipro – IT applications development and maintenance services. Ltd | www.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Latest deals The following table captures some of the significant outsourcing deals in the oil and gas industry over the past five years. Infosys – Manage and operate certain business systems. 2009 DCS ExxonMobil Manage overall invoice processing and accounts payable services. TCS – Manage energy trading operations. EDS AT&T – Manage network and telecommunications. Wipro Client Key processes Core details September.

Exhibit 5 Key service providers in oil and gas outsourcing Name of provider Accenture Aegis Capgemini Cognizant CSC HCL HP IBM Infosys TCS Wipro Source: HfS Research.com 13 . A detailed version of this list is appended at the end of the report. HfS Research. Ltd | www.hfsresearch.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Key Service Providers The following table lists the key service providers in the oil and gas outsourcing market. 2011 © 2011.

Energy trading is back in the limelight The collapse of Enron and the ensuing energy crisis in the US forced many players in the industry to ramp down their trading operations in order to reduce exposure and risk in the financial markets. but can act as a support base for the oil and gas industry. and increasing the focus on alternative sources of energy. finance. namely the Digital Oilfield. a radical departure from how most have operated previously. automating design.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Major industry trends Oil and gas companies are currently facing a combination of opportunities and challenges. Ltd | www. and modelling/simulation tools. as it not only leads to better decision-making. and companies started to pay more attention to risk control and asset optimization. containing costs. During this period. data control. and to provide processed actionable information to the correct users in the company. This will allow the oil and gas sector to share ideas and information with clean technology sectors to offer cheaper and more eco-friendly options for fuel in the future. and exploring the long -term viability of ethanol as a commercial fuel. This section focuses on the current trends that are impacting the oil and gas industry. The essence of the digital oilfield is to integrate all the data from various sources onto a common platform. There is an element of skepticism though. regulations became more stringent. Service providers are joining this effort by increasing research and service capabilities in this domain. operations. Service providers are actively developing these solutions. Aspects such as regulatory compliance. drilling. is becoming prominence in the industry. Major players are opening laboratories and centers of excellence to promote inter-disciplinary studies in this area. employees. and reservoir management. Companies are moving towards a global model which will synchronize their business processes across diverse working environments. Management of this data is very important. efficiency in trading options.com 14 . as most of these companies do not believe that alternative sources can be a mainstream business. Oil and gas companies are struggling to manage the increasing amount of data that is being generated on a daily basis from all domains such as exploration. Moving toward the digital oilfield era A new concept. oil and gas companies are slowly shifting focus to alternative sources of energy such as bio-fuels and geo-thermal resources. often supported by leading IT service providers. © 2011. and master data alignment are crucial for a company to minimize risk and make the right choices in this highly volatile market. We are now experiencing a gradual increase in trading activity.hfsresearch. This new digital information is created by real time data gathering systems. HfS Research. Research is being done by the US federal government to bridge the gap between fossil fuels and renewable energy by tapping into low temperature geothermal resources in America’s oil and gas wells. but it also involves a huge amount of investment in talent and capital. There is also greater focus on managing end-to-end components along the industry value chain. including streamlining processes. Diversification into renewable sources of energy With uncertainty looming over the future of petroleum – with depleting reserves and increasing demand.

technology and outsourcing services. Australia. Capgemini Paris. Ltd | www. North America. India  Finance and accounting  Supply chain management  Sales management  Receivables and collections  Meter operations and billing  Customer surveys and email support Operations in three countries – USA. HfS Research. Has an extensive global delivery network with centers in five continents – Asia. Has over 20 years of experience in this sector. Europe and Africa. Ireland  Contact center  Billing and payments  Debt collection  Back office billing  Finance and accounting  HR  Learning and development  Procurement Founded the Accenture Global Energy Board. Strong near-shore/onshore capabilities for traditional BPO services.hfsresearch. © 2011.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Appendix Key service providers in oil and gas outsourcing Name of provider Accenture Headquarters Oil and gas service areas Key insights Dublin.com 15 . South America. Aegis Mumbai. whose members comprise directors of leading energy companies. and whose purpose is to open a forum to discuss major energy issues. France  Asset lifecycle management  Supply chain optimization  Finance and accounting  Retail and distribution support  IT support  Operational performance improvement Capgemini has over 200 oil and gas clients in more than 30 countries. South Africa. Provides an oil and gas Center of Excellence to offer consulting.

India       Business process management IT support Workflow management Business intelligence Regulatory compliance support Application management Offers a vast range of industry specific IT tools and services for all segments of the Oil and gas value chain. Focuses on next generation business intelligence solutions with an emphasis on cloud computing modeling. © 2011. Has opened a dedicated Centre of Excellence in Norway for the oil and gas industry. a UK based transformation consultancy in 2008. Robust background in engineering design and automation services. Virginia  Systems integration  Application management  Data center operations  IT infrastructure support  Carbon managed service Offers a unique solution for oil and gas companies to reduce their carbon footprint and ensure regulation to the EPA 40 CFR Greenhouse Gas reporting compliance. CSC Falls Church. in addition to traditional BPO services. HP Palo Alto. HfS Research. Has over ten years of industry experience. New York.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Name of provider Cognizant Headquarters Oil and gas service areas Key insights Teaneck. New Jersey  Supply chain management  CRM  ERP support  Data management Offers high value ITO services such as data warehousing and business intelligence solutions. HCL Noida. USA  Business intelligence  Procurement  Finance and accounting  ERP support IBM Armonk. Ltd | www.hfsresearch. India  Customer care and billing  Work and asset management  Content management  Engineering and automation  Supply chain management Strong capabilities in ERP services since acquiring Axon.com 16 .

com 17 . © 2011.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Name of provider Infosys Headquarters Oil and gas service areas Key insights Bangalore.hfsresearch.000 consultants and has completed over 100 engagements in the oil and gas industry. Ltd | www. HfS Research. India  ERP support  Risk management  Supply chain management  Design automation TCS has over 2. Strong delivery model consisting of on-site. TCS Mumbai. offshore and nearshore support across twelve delivery centers in eight countries. India  Finance and accounting  HR support  Order management  Procurement  Digitization and document control  Data quality and master data management  Knowledge services Offers a robust end-to-end data management framework.

South Africa. India Upstream  Consulting  Digital Oil Fields  Upstream Data Management  Collaboration Downstream  Fleet Card Management  Retail Automation Recently acquired SAIC’s global oil and gas IT services business which brings with it new domain capabilities in the upstream Oil & Gas space. Brazil. Nigeria. 2011 Serving O&G majors in 25+ countries including US. Morocco. Canada. Tunisia. etc. HfS Research. including all of the Top 6 Majors. Ltd | www. Wipro and SAIC combined have 40+ O&G customers. France. Australia. Poland. China.com 18 . UK. © 2011. Netherlands. Corporate Functions  HSE/Green IT  Security  Learning  SoX Compliance  Support/ Maintenance Trading  End to end automated test suite for ETRM systems  System Support and Maintenance for mission critical ETRM apps  Investment Analytics Source: HfS Research.hfsresearch. especially in the areas of Digital Oil Field. Uganda. Russia. Wipro will use its new positioning for making further inroads in the Upstream space and to offer end to end O&G services. Kazakhstan. Petro-technical Global Data Management and Petroleum Application Services. Qatar.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Name of provider Wipro Headquarters Oil and gas service areas Key insights Bangalore.

In 2003 he led the landmark Research Life after Outsourcing. Ltd | www. He has spent the last decade as an outsourcing advisor to global enterprises. Asia.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 About the authors Esteban Herrera Esteban Herrera is COO at HfS Research. At Infosys. Latin America and Europe. which was the first to comprehensively focus on the behaviors and processes that can make or break outsourcing success. where his prime focus is developing and delivering compelling and rapid research.herrera@hfsresearch. He is a co -author of the influential book Outsourcing: The Definitive Point of View. data. where he majored in Entrepreneurial Studies and Marketing. He has run outsourcing delivery organizations in India. HfS Research. He also over sees the company's commercial operations.and offshore. A committed globalist. Esteban focuses on the issues and challenges of outsourcing buyers. He has lived and worked on four continents and is fluent in Spanish and Portuguese.com 19 . A respected practitioner. adviser and researcher. insight and practical advice for our buy-side enterprise clients. North America. founding and managing The Concours Group’s Outsourcing Advisory practice and most recently as a Managing Director with Alsbridge. and has advised on over 100 ITO and BPO transactions. helping them manage the entire lifecycle of back office transformations.hfsresearch. Esteban started his career at Accenture. Latin America and Europe. His responsibilities include providing outsourcing buyers with solid research that leverages both deep expertise and the power of social media. A popular speaker and author. © 2011. he has developed unique insight and the ability to ask the right questions to set an organization on the correct outsourcing path. Esteban Herrera can be reached at esteban. Applications and Implications published by Wiley & Sons in 2006. Esteban is a graduate of Babson College. Through his involvement in hundreds of enterprise outsourcing initiatives. Esteban is an outsourcing thought leader who is passionate about the opportunities of globalization and specialization in the industry. delivering “offshore” enterprise solutions before that w as a common term. He can also be found on Twitter: @eherrerahfs. he advises organizations on issues of business process and IT outsourcing on. Esteban’s work has appeared in publications such as MWorld and Directorship. Esteban has worked with Global 2000 companies in the United States. he was responsible for delivery of services to major Fortune 100 clients. ensuring they have the best insight to create and manage their outsourcing relationships.com.

HfSResearch. Reetika is a Senior Research Analyst at ValueNotes Sourcing Practice. With 50. in areas such as analytics and vertical processes. Her final year dissertation was titled Learning from Management Mistakes: Are Today’s Top Business Students Prepared for the Flawed Realities of the Business World?. She currently tracks the outsourcing industry. Reetika has completed her Masters in Marketing Management with distinction from Aston University. It has the largest audience and regular following in today’s global sourcing industry. India. opinion. The HfS Research mission is to provide a unique environment for collective research.com) is the foremost research analyst firm and social networking community. HfS Research. The BPO and Offshoring Best Practices Forum. A strong believer in the power of communities. UK.twitter. including market studies in niche BPO and KPO areas such as medical transcription. She was awarded the Accenture prize for Best Student on her course. India. Led by industry expert Phil Fersht. Based in India. please email research@HfSResearch. IT outsourcing and shared services strategies. and is widely recognized as the leading destination for collective insight. research and analytics and e-learning. Over the last few years at ValueNotes. Global Services Media and the Horses for Sources blog. including Outsourcing magazine.com. providing rapid and insightful commentary.000 industry professionals sharing views and information daily. analysis and debate of enterprise outsourcing and shared services dynamics. You can contact Reetika at reetika@hfsresearch. Europe and Asia/Pacific regions. with a special research focus on the fastgrowing technology-enabled learning segment. based in Pune. including in-depth competitive intelligence. To learn more about HfS Research. receiving Beta Gamma Sigma honors.com. information technology services and cloud business services. The HfS LinkedIn community. is thriving with over 12.000 monthly visitors across the global outsourcing industry.hfsresearch.com/horses4sources.com 20 . Ltd | www. Launched in 2007.000 subscribers.How Is Outsourcing Fueling the Oil & Gas Industry? May 2011 Reetika Joshi Reetika Joshi contributes regularly to HfS Research's BPO research coverage. Reetika’s work has appeared in many industry-relevant publications and websites. experience and knowledge across the global outsourcing industry to help enterprises explore new performance thresholds. Prior to this. she received her Bachelors in Business Administration with distinction from Symbiosis International University. research and open debate of industry issues and developments. as well as an e-learning industry knowledge-sharing group on Linkedin. HfS Research provides the most impactful and frequently-visited global collaborative community platform in the global services industry. You can access information about HfS at HfSResearch. focused on helping enterprises make complex decisions with their business process operations. she has undertaken several research assignments across the outsourcing spectrum. HfS Research's acclaimed blog Horses for Sources has more than 120. she has had the opportunity to work on multiple bespoke research services for outsourcing providers. investment opportunity assessment and custom publishing. the HfS Research team is a multi-disciplinary group of analysts across North America. © 2011. she manages ValueNotes Sourcing Practice’s corporate blog. About HfS Research HfS Research (www.com and on Twitter at www. The organization is unique in the fact that it integrates personable social networking with market research and expert advisory services. She has presented her views on the state of the outsourcing at various conferences. with deep domain knowledge in business process outsourcing.