BP to axe 540 vendors

21 January 2010

21 January 2010 | Jake Kanter

Oil giant BP has outsourced part of its IT procurement to Computacenter and CompuCom.

Under the five-year deal, the outsourcing firms will collaborate to source IT hardware for BP’s UK and US divisions and software globally.

It will enable BP to cut costs through axing 540 suppliers and simplifying processes. Technology publications have reported that the deal will save BP up to £20 million, but a spokeswoman refused to confirm the target.

What is certain is that it will contribute to the energy company’s overall savings aim of $4 billion (£2.5 billion).

“By consolidating and simplifying our IT supply chain, we will reduce our IT supplier base by at least 540 vendors, and significantly remove cost while driving complexity from our operations,” said BP’s chief information officer Dana Deasy.

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