SAIC expands BP outsourcing

BP has renewed a $750 million outsourcing deal with SAIC—named top private IT company by Business Week for 2002.

Science Applications International Corporation (SAIC) has extended its portfolio of contracts with BP valued at more than $750 million. Under the revised agreement, SAIC will provide BP with a range of IT services through 2006.


The SAIC-provided services include infrastructure, datacenter and application support. The new agreement extends a long-term relationship between SAIC and BP, and a mutual commitment to achieve the best possible results.


BP’s CIO John Cross was behind the first SAIC contract with BP back in 1992 when it was looking to outsource its IT operations. Since then, Cross believes, “The services market has grown quite a bit, but I wouldn't say that it has matured that much. Companies that claim to be global providers are not that. If anything they are multinational. When you try to work with them you find that they may have a global presence of infrastructure but that management processes are still localized. The regional managers slow up their performance across the geographies.”


BP’s relationship with SAIC is built around a risk/reward model. SAIC develops and supports BP Exploration’s (BPX) data processing and telecommunications centers around the world—with around 60,000 users. BPX estimates this saved over 30 percent in opcosts in the first year, and over 20 percent in the second year.

Business Week

SAIC was recently named top private information technology company for 2002 by Business Week.

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