August 22, 2012: The oil giant British Petroleum (BP) signed a multiyear contract with Accenture last week to provide them with financial management and accounting services. According to the reports the deal signed is an extension of 21 year partnership between the two companies. The new deal is a first kind of long term outsourcing engagements signed in the midst of the Euro crisis.
The new outsourcing engagement will standardize many of the finance and accounting process of BP. The standardization will take place in the finance and accounting processes like
- Record to report
- Order to cash
- Procure-to-pay and
- Production revenue accounting services.
According to the company sources of BP, the new partnership with Accenture will help them realize their vision of standardizing and consolidating their finance and accounting processes across the global offices.
The outsourcing relation between BP and Accenture started way back in 1991. In 1991, Accenture established a shared service center to provide BP with finance and accounting services and SAP support services. But, the first outsourcing deal was signed between the companies in 2002. Then by 2007, Accenture started providing finance and accounting services from their global locations like Aberdeen, Houston, Bangalore and Shanghai. By 2010, Accenture provided most of these services primarily from Bangalore but also operated from their locations in Aberdeen, Stavanger, Krakow, Istanbul, Athens and Buenos Aries.
According to BP officials, the key driver to extend their Finance and Accounting outsourcing engagement is the challenge they face to manage these processes in a diverse environment. BP realized the challenges can be addressed only by centralizing and standardizing the processes and also if they can be performed by experts in the field.
Accenture for years has been a leader in F&A outsourcing segment. Recently they were positioned as the leader in F&A outsourcing in the Gartner Magic Quadrant for finance and accounting outsourcing. Accenture help their clients to deliver high performance with their in-depth analytical knowledge, industry insight and innovation. Their F&A outsourcing services include procure-to-pay, order-to-cash, and other services that include finance strategy and organization design.