Andersen Consulting and BP Amoco Announce $200-Million Outsourcing Agreement in United States.Business Editors/Energy Writers HOUSTON--(BUSINESS WIRE)--January 20, 2000 Largest-Ever Downstream Energy Finance and Administrative Services Outsourcing Deal Signed Andersen Consulting See Accenture. and BP Amoco (NYSE NYSE See: New York Stock Exchange : BPA BPA British Paediatric Association. ) today announced a $200-million agreement to expand the finance and administrative (F&) services Andersen Consulting provides to BP Amoco's downstream businesses in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Under the 10-year agreement, Andersen Consulting will provide F& services to BP Amoco's downstream refining and marketing operations. The contract is the largest of its type ever signed in the downstream energy sector. Andersen Consulting's downstream services, which will include credit card support, accounts payable, general and service station accounting, treasury services Treasury services is a function of an investment bank which provides transaction, investment and information services for chief financial officers, treasurers. Treasury services concentrates and invests client money, and provides trade finance and logistics solutions as well as , and financial analysis and reporting, will be provided from Andersen Consulting's Senergy Business Center (SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. ) in Houston. Once former Amoco financial processes are relocated from Tulsa in the second quarter of 2000, the SBC will add roughly 150 new jobs to Houston. This new downstream agreement between BP Amoco and Andersen Consulting follows the June 1999 announcement of a 5-year, $100-million contract extending a pioneering F& outsourcing arrangement between Andersen Consulting and BP Amoco in the UK and Norway. These agreements further demonstrate the increasing role of outsourcing among newly consolidated oil companies, as well as opportunities to gain efficiencies through electronic commerce. This new F& services agreement also complements other joint initiatives between Andersen Consulting and BP Amoco to utilize information technology to deliver additional value, including a broad electronic procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. program recently launched in Europe and the US. &uot;By migrating manual processes toward electronic commerce, we expect to deliver significant cost savings to BP Amoco's Downstream businesses,&uot; said Michael Scimo, a partner with Andersen Consulting's Energy practice. &uot;BP Amoco has the opportunity to create a purely electronic environment for financial transactions. The structure of our contract with BP Amoco provides incentives to both parties to make this happen. We are especially excited about teaming with BP Amoco's business units, customers, and suppliers to deliver new and improved electronic capabilities.&uot; Alan Eilles, Downstream Chief Financial Officer, BP Amoco said, &uot;Andersen Consulting has produced strong results for BP Amoco throughout the 1990's. As we continue to implement new business models at BP Amoco, Andersen Consulting will help us take the performance of our F& support to the next level. The entire energy industry has a tremendous opportunity to embrace business-to-business eCommerce and, working with Andersen Consulting, we are particularly excited about the opportunities offered by web-based solutions for the downstream businesses of BP Amoco.&uot; The agreement, which continues BP Amoco's strategy of focusing on its core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae finance and administrative service provider for the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. downstream energy industry. Andersen Consulting, a leading global management and technology consultancy, has been involved in designing, building and/or operating the information and business processing infrastructure of more than 70% of global energy leaders. Andersen Consulting, whose mission is to help its clients create their future, works with clients from a wide range of industries to link their people, processes and technologies to their strategies. Andersen Consulting has more than 65,000 people in 46 countries. Its home page address is http://www.ac.com. BP Amoco is one of the world's largest companies and a leader in energy and petrochemicals, with 1998 revenues of more than $83 billion. The companies main activities are exploration and production of crude oil and natural gas; refining, marketing, gas marketing, supply and transportation; manufacturing and marketing of petrochemicals; and a growing activity in solar power generation. BP Amoco has well established operations in Europe, North and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , Australasia and parts of Africa. More information about the company can be found at http://www.bpamoco.com |
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