The agreement follows the signing of a US$ 1.1bn outsourcing contract between BP Amoco and PwC for in the United States, announced in November 1999. The two organisations already have similar agreements relationship in Europe and South America.
The new deal is believed to be the largest contract for finance and accounting services in Canada and the first agreement of its kind in the Canadian energy industry.
Under the terms of the contract, BP Amoco will outsource to PwC BPO Canada its acounting services and associated information technology groups in Calgary.
Approximately 300 BP Amoco employees based in Calgary will join PwC to form a new service unit that will manage various business operations of BP Amoco and other companies, including finance, administration and information technology.
Joe Bryant, President, BP Amoco Canada, said: ‘The agreement is a mutual gain for everyone concerned and meets the expectations of our shareholders. It allows us to focus on what we do best – finding, developing, producing and marketing natural gas and its derivatives. It also ensures that our cost structure is as flexible as the commodity price cycle, so that we can continue to control costs and focus on growth. For employees joining PricewaterhouseCoopers, it provides an exciting career opportunity where they will become part of the core business of a global leader.’
John Haslett, PricewaterhouseCoopers partner in charge of the firm’s new service unit in Calgary, said: ‘This deal provides us with a core group of highly skilled and experienced professionals who will be instrumental in helping us grow our BPO practice in Canada. Open for business from 1 January 2000, our new Calgary facility has already caught the attention of other companies that view BPO as a key tool in achieving their strategic business goals.’
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