Energy company Shell has completed a move to outsource all of its SAP-based HR and payroll application management services to Accenture.
Shell signed the multi-year deal in July 2011, to cover the areas of employee administration, self-service, environmental health and payroll.
The deal raises the question as to why the company chose to outsource the application management services, over going down the Software-as-a-Service (SaaS) route. This may be explained by the existing relationship Shell has with Accenture, having worked with the consultancy in other parts of the business over the last 15 years.
More than 90,000 Shell employees use the SAP-based systems in 60 countries around the world.
Accenture will provide application maintenance services such as preventative maintenance, change management, data archiving and management documentation. It will also provide support services including service desk support, incident resolution, user access management and technical support.
Furthermore, Accenture will be responsible for designing, developing, testing and implementing application improvements. It is delivering the services through its centres in India and the Philippines.
Shawn Collinson, global client partner for Accenture's work with Shell, said: "The breadth of our SAP managed service capabilities allows us to improve service levels, while reducing the costs and risks associated with rich and evolving application environments."
In February 2010, the energy company announced an aggressive standardisation, simplification and offshoring programme in an effort to slash $3 billion (£1.9 billion) from costs.
As well as with Accenture, Shell has application support deals with IBM, Logica and Wipro.