By Joey Gardiner, 10 November 1999 18:18
NEWS BP Amoco has announced it is to outsource its US back office and accounting divisions to PricewaterhouseCoopers (PwC), in a deal valued at $1.1bn over 10 years. PwC said the deal was only possible because of improvements in information technology which allow a company's internal processes to be outsourced. BP Amoco revealed that it is also in negotiations to outsource more of its back office services to PwC in Canada. In the deal announced today, PwC will handle BP Amoco's back office and accounting operations now completed in Chicago, Houston, Oklahoma and Tulsa. Currently BP Amoco runs its accounting systems off a SAP ERP platform. Approximately 1,200 staff will be transferred from BP Amoco to a PwC division in Tulsa - 300 of whom are fully trained SAP technicians. PwC will create cost savings for BP by using the staff as a commercial resource, free to work for other clients. Joseph Vales, global marketing director at PwC said that the deal is unique because one vendor is supplying the IT and the processing. He said the agreement represents "the integration of IT and finance professionals to provide real business value for companies".
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