Now that Schlumberger has finalized its takeover of the Sema Group IT consultancy, it is embarking on a major reorganization. Top down, Schlumberger will be divided into two groups, Oilfield Services (OFS) and Schlumberger Sema. The Sema unit will regroup Schlumberger Test & Transactions and Resource Management Services, including the recently acquired CellNet, Convergent Group, and Bull CP8.
SIS
One aspect of the changes is a move away from non core manufacturing business such as Meters and Test, but the smart card technology will be kept and is intended to become an integral part of the group’s offering – including to the oil and gas sector. Within the OFS unit, there are now two new sub units - Schlumberger Information Solutions (SIS) and Schlumberger Reservoir Evaluation and Development Services (REDS). Within SIS, there has been another reshuffle into six divisions to better represent the new corporate emphasis on IT and services: - GeoQuest, Merak, IndigoPool, Data and Consulting Services, Data Management and NExT (the training joint venture with Heriot Watt and Texas A&M). These will be provided with additional support by the oil and gas portion of Schlumberger Network Solutions and Sema, for IT integration, outsourcing, consulting, and security.
Confusion
A Schlumberger source told PDM “The old organization was an obstacle to the coherent development of Schlumberger’s e-business strategy. There was brand overlap and confusion between Decision Point, Mindshare and IndigoPool. The new arrangement will sort this out and prepare the way for more e-business ideas - new portals, application service provision and even e-consulting.”
21,000-strong
This strategy is to apply to the bigger picture, with the 21,000 strong Sema group to continue with its existing lines of business, but also to transfer its technology, especially from its 1500 strong WebTec division. Schlumberger plans to extend Sema’s current European-focused offering across globe. The cross-fertilization will likely work in the opposite direction too, with OFS experts injecting the Sema consulting arm with oilfield savvy. Before the Sema acquisition, Sclumberger headcount was some 63,000, and Schlumberger recruiting remains strong at 1,400 in 2000 and 1,900 forecast for 2001. The acquisition of Sema Group is intended to allow Schlumberger to compete in the IT consulting market with companies like IBM and SAIC.
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