Technology Sourcing in the Oil and Gas Sector (PowerPoint PPTX Slide Deck)

BENEFITS OF THIS POWERPOINT DOCUMENT

1. Technology Sourcing
2. Global Sourcing of Technology
3. Oil and Gas

PROCUREMENT STRATEGY PPT DESCRIPTION

Explore a strategic framework for technology vendor sourcing in Oil & Gas, crafted by industry experts. Enhance relationships, streamline contracts, and optimize costs. Technology Sourcing in the Oil and Gas Sector is a 15-slide PPT PowerPoint presentation slide deck (PPTX) available for immediate download upon purchase.

Explore Slides inside the Deck:

Cost Reduction Strategies in IT Vendor Negotiations Phased Approach to Technology Vendor Sourcing Enhancing Strategic Partnership with Tech Provider B

This deck summaries an approach and key topics for technology vendor sourcing in the Oil and Gas industry.

The objectives of the approach were to

1. Develop stronger relationships with vendors and greater support in executing O&G client's technology strategy

2. Provide the client with a simplified supply base with fewer vendors and fewer contracts

3. Ensure that the client enjoyed market competitive rates for products and services

4. Assist the client with setting up an established panel of vendors to serve global, regional and local requirements

5. Ensure that the client achieves better cost efficiency, service delivery and more accurate invoicing procedures with its technology vendor base

6. Ensure that the organization deveops and maintains Technology sourcing as a global capability, and in the process provide a career pathway for its staff involved in this critical function and the operations of governance in global sourcing and procurement processes more generally

PROCUREMENT STRATEGY PPT SLIDES

Cost Reduction Strategies in IT Vendor Negotiations

This PPT slide outlines a case study of a negotiation led by the VSP for a contract with Security vendor X, achieving approximately $4 million in cost savings. The project involved evaluating 5 IT vendors to support over 125 custom applications, transitioning from a staff augmentation model to managed services. The goal was to lower total costs while maintaining service quality for revenue-impacting systems. The negotiation strategy included 7 key levers: reducing rates based on benchmarks, securing discounts for multi-year commitments, lowering transition costs, providing efficiency gains, optimizing PMO costs, deferring cost of living adjustments, and securing additional investments. Results included a 7-9% reduction in application development rates for near-shore resources and a 10-20% reduction for off-shore resources, preserving $1.7 million in prior costs and investments.

Phased Approach to Technology Vendor Sourcing

The VSP program outlines a structured approach to sourcing technology vendors across multiple phases: "Quick Wins," "Wave 1," and "Wave 2." The "Quick Wins" phase features initial vendors like Tech Provider F and BCM, focusing on immediate efficiency and cost savings. Subsequent waves engage a broader range of vendors, including hardware, software providers, and systems integrators, indicating a strategic layering of vendor relationships. Financial metrics show addressable spend increasing from $170-205 million in the initial phase to $460-480 million in Wave 2, with projected in-year savings fluctuating. Year 1 estimates project a total of $830-905 million in addressable spend and $40-57 million in savings, demonstrating the program's effectiveness in optimizing vendor relationships and driving cost efficiencies.

Enhancing Strategic Partnership with Tech Provider B

This PPT slide outlines a strategic initiative to enhance the partnership between an Oil & Gas (O&G) client and Tech Provider B, structured into rationale, expected outcomes, and implementation planning. The rationale emphasizes the need for improved commercial terms for IT services, leveraging underutilized services like systems integration, and positioning Tech Provider B to replace phased-out vendors through vendor rationalization. Expected outcomes include securing favorable rates aligned with current market conditions and the O&G client’s spending, alongside an updated Master Services Agreement. Implementation planning ensures continuity within the O&G client, supporting project negotiations, updating stakeholders, and assessing the impact of the new partnership model. The timeline from June to August indicates a structured approach to contract negotiations and stakeholder engagement, fostering a beneficial relationship between the O&G client and Tech Provider B.

Integrated Procurement Strategy for Arabian Business Units

This PPT slide outlines a collaborative approach by the VSP to enhance the procurement operating model across Business Units. It includes 3 main sections: leveraging global contracts, supporting sourcing initiatives for Arabian business units, and developing a common procurement operating model. The first section emphasizes utilizing global agreements with tech providers to maximize value from established partnerships. The second section details support for sourcing initiatives, with a timeline for capturing savings ranging from one to 6 months, reflecting an efficient process. The final section focuses on developing a common procurement operating model, outlining components such as processes, organizational structure, and accountabilities, suggesting an integrated framework for alignment across procurement facets.

Source: Best Practices in Procurement Strategy, Oil & Gas PowerPoint Slides: Technology Sourcing in the Oil and Gas Sector PowerPoint (PPTX) Presentation Slide Deck, Affinity Consulting Partners