ChevronTexaco Prefers IBM For Services - InformationWeek
Software // Enterprise Applications
02:07 PM
Free Yourself from Legacy Apps
Jun 08, 2017
They've served their purpose years ago, but now they're stretching your IT budget and increasing s ...Read More>>

ChevronTexaco Prefers IBM For Services

Computing heavyweight joins BearingPoint as one of two preferred suppliers of business-consulting services.

ChevronTexaco Corp. has tapped IBM to join BearingPoint Inc. as one of its preferred providers of business-consulting services following a nine-month evaluation period. The two-year agreement, unveiled today, means that the oil and gas conglomerate must first turn to either IBM's Business Consulting Services or BearingPoint for consulting projects that focus on IT-driven processes such as supply-chain management, procurement, and outsourcing.

ChevronTexaco will choose which firm to work with on a project-by-project basis, and in some cases IBM and BearingPoint will work jointly. The value of the deal was not revealed.

IBM Business Consulting--formerly PricewaterhouseCoopers Consulting prior to its acquisition by IBM--had already been engaged in a number of major IT projects with ChevronTexaco. But, says John W. Joyce, leader of IBM Business Consulting's petroleum practice in the Americas, "this is going to greatly expand the scope of work we do with them." (Joyce is not related to IBM CFO John R. Joyce).

IBM is currently working on merging separate SAP systems that were in use when Chevron and Texaco merged in 2001. The successful integration of IT systems is key to the billions in savings that ChevronTexaco hopes to achieve by operating as a single entity.

This morning, company chairman and CEO David O'Reilly told stockholders that ChevronTexaco is successfully completing the merger and "operating today as one company with common systems, policies, and practices." He said the company is on pace to achieve $2.2 billion in savings derived from merging back-office operations and IT systems, well beyond the $1.2 billion originally estimated.

ChevronTexaco shareholders this morning also selected PricewaterhouseCoopers LLP as the company's independent auditor, an indication that the PwC spin-off is paying dividends for both IBM and PwC's auditing business. In the post-Enron era, businesses are wary of purchasing consulting and auditing services from a single vendor because of concerns about conflicts of interest.

Joyce says other "discussion points" between the two companies include the possibility of IBM providing the oil producer with hosted software services, offshore outsourcing facilities, and business-process outsourcing services.

Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of Data and Analytics
Today's companies are differentiating themselves using data analytics, but the journey requires adjustments to people, processes, technology, and culture. 
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on for the week of November 6, 2016. We'll be talking with the editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll