BP, one of the leading oil and gas companies in the world, has entered into a five-year outsourcing contract with Infosys Technologies.

 

Under the terms of this application and support agreement, Infosys (News - Alert) Technologies will manage and operate a large portion of business systems for BP.

 

The agreement with Infosys is part of BP’s program to consolidate its IT vendors for application development and application maintenance (ADAM).

 

As part of this initiative, BP also signed an agreement with another Indian IT services company Wipro Technologies. Under the five-year agreement with BP, Wipro (News - Alert) will provide IT ADAM services for the company’s fuel and corporate businesses globally.

Both companies met the rigorous selection criteria that assessed their IT capabilities as well as knowledge of the oil and gas sector.

 

Dana Deasy, BP Group CIO, said, “In awarding Infosys ADAM work for our Integrated Supply and Trading and Exploration and Production businesses, we look to leverage its capability and knowledge of the oil and gas sector. This agreement will enable BP to reduce complexity, standardize work processes and lower our overall cost base.”

 

Forrester Research recently named Infosys Technologies as one of the top India-based consultancies in the SAP space. The “Forrester (News - Alert) Wave: SAP Implementation Providers, Q3 2009” report also mentioned that Infosys has a strong vertical expertise particularly across manufacturing, life sciences, CPG and utilities markets.

 

Commenting on the deal with BP, Kris Gopalakrishnan, CEO and managing director of Infosys Technologies, said, “Infosys has a long standing relationship with BP, delivering consulting and technology services. We are well positioned to use our global sourcing expertise and transformational capabilities in the oil and gas domain to deliver significant improvement in operational efficiencies to BP as a part of this new agreement.”

 

Through the agreement with BP, Wipro will provide benefits of scale and efficiency by leveraging its robust global-delivery model, which will look at delivering services from locations across the globe for BP, officials said.

 

Both Wipro and Infosys are active outsourcing players in India. They face tough competition from big global players such as IBM, Hewlett-Packard (News - Alert) and Accenture. The current economic crisis, as well as the anti-outsourcing campaign from the Obama administration, is transforming the Indian outsourcing market, according to some reports. One news report noted that Infosys is eyeing for 10 large government projects in India as part of a drive to lower its dependence on the U.S. market.

Infosys, which gets more than half its business from the United States, plans to generate $1 billion in revenue from the Indian market in 2 to 3 years versus an insignificant level now, according to the report.

 

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