Shell outlines global IT revamp strategy

Oil giant Shell is overhauling its global IT infrastructure with the aim of saving $850m (£474m) a year - but at the cost of thousands of jobs.

As part of the company's IT Vision restructuring project, Shell is aiming for 'world-class price performance in everything it does' by 2008.

Cost savings will be made through streamlined decision-making, applications rationalisation, infrastructure consolidation and better procurement, says Shell.

The group will also outsource IT work to cost-advantaged locations in Malaysia and India.

As a result of its cost-saving strategy, the corporation expects to reduce its global IT workforce by between 20 and 30 per cent, or 1,900 to 2,800 workers, by the end of 2006.

'We intend to make IT for Shell much more efficient across the globe,' said a Shell spokeswoman.

'We have been planning the IT Vision project for two years, to make our operations more efficient, streamlined and focused. We decided that the way to do this is through rationalisation of applications and streamlining our infrastructure.'

The Shell spokeswoman told Computing that an undecided proportion of the jobs will be moved offshore.

Shell says it will talk to its IT workers to 'alleviate personal and professional concerns'.

The company already uses an outsourced IT facility in Cyberjaya, Malaysia.

And the Anglo-Dutch organisation this week announced outsourcing deals with Indian services specialist Wipro and software giant IBM.

Shell will meet with regional and local IT leaders in the next few weeks to discuss its implementation strategy.

Shell expects the local impact on people will vary as specific rationalisation, consolidation and work transfer programmes are implemented.

A memo sent to staff says the needs of the business will dictate the speed of programme implementation.