BP refines £4.7bn operational efficiency plan

Changes to project and process management drive savings.

By Leo King and Anh Nguyen, Computerworld UK |  IT Management, project management

Oil giant BP is aiming to remove a total of $7 billion (£4.7 billion) from annual operational costs, aided by a hugeoverhaul of IT, processes and project management.
Under a strategy taking place over a total of five years, the company began by successfully removing $4 billion (£2.7 billion) from operational costs since 2008, a spokesperson confirmed today. BP has now said it will now target a further $3 billion (£2 billion) removal of costs "over the next two to three years".
Extensive changes to back office operations, including IT, have played a significant role in the cost cutting so far. Last August, BP cut ties with 35 application development providers and signed £1.5 billion worth of deals to outsource to IBM, Accenture, Wipro, Infosys, and Tata Consultancy Services. In December, it outsourced global communications to T-Systems and Siemens in another bid to reduce the number of suppliers it works with.
Job losses have played a significant part in the cost cuts, with a net loss of 8,000 staff in the last two years -- some 22,000 left the company and 14,000 joined.

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