British energy major BP announced plans to set up a major new centre for its global business services (GBS) operations in Pune, India. The BP-owned and operated centre, which will provide business processing and advanced analytics capabilities in support of BP businesses worldwide, is expected to begin operations by January 2021. When fully operational, it is expected to employ around 2,000 staff.
The announcement comes after BP said it will lay off 10,000 employees worldwide and will reduce capital expenditures this year by 25%. CEO Bernard Looney points to crude oil prices that are below the level the company needs to make a profit, as the primary cause of the layoffs and other restructuring measures.
The new centre in India will assume operational ownership of third-party business processes and seek to further extend its work with analytics and data science capabilities to pursue better business outcomes, the company said. From customer service and vendor payments to financial accounting and control, the centre will support every part of BP.
“As BP works to reinvent itself and reimagine energy, we are excited to accelerate the transformation of our business processes. Our new centre in India will enable us to put digital at the heart of BP’s businesses. Accessing India’s great talent pool and leveraging an agile mindset, we expect to advance the customer experience, adding further value to BP,” said BP Senior Vice President for GBS Camille Drummond.
Establishing a centre in India will allow BP to tap into the growing digital talent pool in a country that is strategically important for BP and the second most populous country in the world. The new centre will lead BP’s development and application of cutting-edge digital solutions and agile ways of working as it works to increasingly automate and transform its transactional processes. The new centre will add to BP’s growing business presence in India.
“This is another significant step forward for BP in India. The centre will allow us to provide innovative solutions as we tap into India’s diverse and skilled workforce, expand our footprint here and develop low carbon businesses around the world,” said BP Regional President and Head of Country Sashi Mukundan.
The new centre will begin to recruit digitally savvy and customer-focused candidates in the next few months, aiming to rapidly grow to a workforce of about 2,000 over time.
With its many investments in India and employing around 7,500 people in the oil, gas, lubricants and petrochemicals businesses, BP is one of the largest international energy companies in India. In addition to its gas value chain, retail, aviation fuels and mobility solutions alliance with Reliance Industries Ltd, BP’s activities include Castrol lubricants; the licensing of competitive petrochemical technologies; oil and gas trading; clean energy projects through investment in Lightsource BP; IT back office activities; staffing and training for BP’s global marine fleet; and the recruitment of skilled Indian employees for its global businesses. India Gas Solutions Private Limited, a 50-50 joint venture to source and market gas in India, is also part of BP’s gas value chain alliance with RIL.