oil & gas verticals in it companies-report

8/10/2019 Oil & Gas Verticals in IT Companies-Report

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A Report

On

Oil & Gas Verticals in IT companies

SUBMITTED BY:

Siddhant Agarwal

Himanshu Lohani

Nitika Rawat

Aman Kandwal

Under the able guidance of

Dr. J.L. Kashyap

(Assistant Professor)

COLLEGE OF ENGINEERING STUDIES

UNIVERSITY OF PETROLEUM & ENERGY STUDIES

DEHRADUN

December 05, 2012


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A Report

On

Oil & Gas Verticals in IT companies

SUBMITTED BY:

Siddhant Agarwal

Himanshu Lohani

Nitika Rawat

Aman Kandwal

Under the able guidance of

Dr. J.L. Kashyap

(Assistant Professor)

In partial fulfillment of the requirements for

BACHELOR OF TECHNOLOGY

IN

COMPUTER SCIENCE ENGINEERING WITH SPECIALIZATION IN OIL & GAS INFORMATICS

COLLEGE OF ENGINEERING STUDIES

UNIVERSITY OF PETROLEUM & ENERGY STUDIES

DEHRADUN

December 05, 2012


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ABSTRACT

Most of oil and gas companies like ONGC,RIL, BP,ESSAR, IOC etc. are outsourcing there

information technology related work to it companies. It companies providing help related to IT

work to the companies of energy sector. IT companies provide software according to thereneed, helping to implementing EPR for oil and gas companies, handling the database and many

areas where those companies provide the help and increase their profit. There is wide range of

services for energy sectors companies provided by I consulting companies from technology

infrastructure to business application and process to complete business transformation.

There are some factors which prompting energy companies to

consider outsourcing:

Cost cutback: there is huge amount of cost involve in energy sectors operations so there is aneed of outsourcing the work which help to reduce the cost and perform the operation in a

efficient manor.

Skills shortages: there is skill shortage of it related work handing in energy companies so

they take the help of it consulting companies.

Demand for greater efficiency and effectiveness: there is great demand of efficiency

and effectiveness. Any misalignment can lead to huge amount of cost involvement. The

upstream and gas industry rely on a complex set of disciplines which must together if high

performance is to be attained.

Focus on core competencies: to make company more competitive they apply the best

business approach in current market. It consulting companies help them to implement those

technologies like ERP implementation.

Short delivery time to market :in energy sector there is a need o strong value chain so

that they can delivery there product from one place to another place because there is short

time to delivery to market. It consulting companies help to make their supply chain effective

with latest market best practices.


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Contents:

Cover page & Title Page--------------------------------------------------------------------01

Abstract ---------------------------------------------------------------------------------------03

CHAPTER 1: INTRODUCTION

1.1 Introduction-------------------------------------------------------03

1.2 Overview-----------------------------------------------------------04

1.3 Purpose Of Study-------------------------------------------------05

CHAPTER 2: HISTORY OF COMPANIES TAKEN FOR FINANCIAL ANALYSIS

2.1 Accenture---------------------------------------------------------------07

2.2 HCL------------------------------------------------------------------------08

2.3 Cognizant-----------------------------------------------------------------09

2.4 NIIT--------------------------------------------------------------------------10

2.5 Patni Computers--------------------------------------------------------11

CHAPTER 3: RESEARCH DESIGN /METHODOLOGY/PLAN

3.1 Research Objectives----------------------------------------------------12

3.2 Data Collection Method------------------------------------------------12

CHAPTER 4: ANALYSIS AND FINDINGS

4.1 Analysis for HCL-----------------------------------------------------------14

4.2 Analysis for Patni Computers-------------------------------------------14

4.3 Analysis for Accenture----------------------------------------------------15

4.4 Analysis for NIIT------------------------------------------------------------16

4.5 Analysis for Cognizant Technology------------------------------------16

4.6 Suggestion-------------------------------------------------------------------17

Conclusion----------------------------------------------------------------------------------18

References----------------------------------------------------------------------------------19


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Ch 1: INTRODUCTION

Todays time most of the ITcompanies are working for oil and gas, power, and utility sector.

In this competition time it is backbone for every companys growth. Every company using it

services like software related work and computerized their organization. Oil and gas, power andutility sector contribute a major part in overall profit of a it services provider company.

This is related to find the contribution of oil and gas sector in overall profit of it companies and

which services they provide to the oil and gas sector companies.

There is wide application of it services in oil and gas sector like special purpose software which

deals from upstream to downstream operations, ERP implementation, handling the pipeline by

SCADA etc.

As we know that in oil and gas sector there is huge money investment so companies in thissector taking the consultancy for it services from it companies.

To this first we take the annual report of five it companies which are dealing in oil and gas

sector, then take their balance sheet of three year and total revenue and find the overall

growth of companies in that time.

From that total revenue find contribution of oil and gas, power and other sectors.

Next part is to know the services which provides by the IT companies to the oil and gas, power

and utility sector companies.

This report focus on growth of energy sector revenue and what are the areas where energy and

utility sector companies take help and what technologies they implemented in their

organization.

OVERVIEW

This project is related to analyze the financial growth of five it companies which are working for

oil and gas, power and utility sector companies and also know the factor which are responsiblefor that earning or growth.

To do this financial growth and there is need of annual report and other financial data. This

data is over three year so that we comparison the data to previous year and find the growth

year by year.


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From that growth we find the contribution of oil and gas, power and utility sector.

With this result make a model which shows the factor and their respective profit and which are

the areas where profit is high and what are the possible areas where it companies can provide

there help so those companies can increase their profit.

This project is divided into four steps:

1- Collection of financial data and other data related to analysis.

2- Analysis that data to find the total growth and what is the part of oil and gas, power, and

utility sector.

3- Services or technology provided by the IT companies which give that revenue.

4- What are the possible areas where it consulting companies providing more help to oil and

gas, power and utility sector and increase their profit?

PURPOSE OF STUDY

This purpose of study of this report knows the areas where it consulting companies working for

energy and utility sector companies and how much increase in contribution of those companies

in given period.

One object of this report is indicating technology change done by the consulting companies andalso suggests possible areas where companies can provide there help and increase their profit.

This report shows analysis of balance sheet of five it consulting companies in a given period of

2004 to 2005 and indicating the growth of assets and liabilities.

This report is based on balance sheet analysis which is provided by it companies.


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Ch 2: History of companies which are taken for financial analysis

First we select the top IT services provider five companies which are dealing in that sector are:

1- Accenture

2- Hindustan computers Limited Technologies (HCl)

3- Cognizant technologies

4- NIIT technologies

5- Patni computers

Accenture

Accenture is a global management consulting, technology services and outsourcing company.

Accenture can mobilize the right people, skills, and technologies to help clients improve their

performance. At Accenture you can join ranks with more than 100,000 other highly talented

professionals in 48 countries. They have extensive experience in a wide variety of industries in

key business areas, including customer relationship management, supply chain management,

business strategy, technology and outsourcing.

Accentures Business:Accentors professionals work with many of the worlds biggest, best

and most innovative organizations. Helping them identify and capitalize on business and

technology opportunities. Accenture can quickly mobilize the right people, skills, capabilities,

alliances, tools and technologies to improve their clients business performance.

The different areas of Accentures business are:

Consulting: Companies are looking for more than advice, they need total solutions.

Thats why we have developed a comprehensive approach to consulting that moves

clients forward at every level of their business, from high-level strategic planning to

improved customer service, to day-to-day operations.

Technology: Technology underpins every decision organizations make, from the markets

they enter, to the systems they deploy, to the skills they require of their people. Every


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day Accenture delivers new technology-based business solutions to clients, leveraging

the capabilities of our Accenture technology labs, our global solution centers and the

deep technical skills of our people.

Outsourcing: In a world that demands greater shareholder value and new approaches to

everything from day to day operations to long-term strategy, companies need to focuson activities that differentiate their business. Whether through a conventional

outsourcing model- delivering long-term value through the management and operations

of entire information technology department or through the net sourcingthe new

economys internet-based subscription model for outsourcing-Accenture focuses on

bringing both business and technology skills to deliver life cycle solutions and bottom

line results to hundreds of organizations around the world.

Some important clients:

Accenture serves 91 of Fortune Global 100.

Two-thirds of Fortune Global 500.

It has built relationships with clients like Caterpillar, the London Stock Exchange,

Petrobras and BP.

Hindustan Computers Limited

HCL is Indias original IT startup founded by Shiv Nadar, Ajai Chowdhry and a few other

passionate entrepreneurs in 1976, 3 decades ago. IT has grown to become a $2.5 billionenterprise by 30

th June, 2005, pitch forking it into the big league of Indian corporate. This is

symbolized in a sense of fearlessness, which has found expression in the Courage-Guts-

Fearlessness campaign launched.

HCL is Indias original garage IT startup story. For 29 years, HCL has stood for invention,

reinvention and creativity.

HCL has a balanced portfolio as HCL works in 4 broad segments:

1. Product Engineering and Technology Services (ranked no. 2).

2. Applications (ranked no. 5).

3. Infrastructure (ranked no. 1).

4. BPO (ranked no. 3).

Today HCL do cutting edge work for global customers in domains such as Aerospace,

Semiconductors, Costumer and retail, BFS, Life Sciences, Telecom, etc. with deep knowledge


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practices in technology, applications, infrastructure and BPO. HCL applications business which

was developed with both organic and inorganic means is today a creditable no.-5 in 3 years

time.

HCL invested solidly in their physical infrastructure which now boasts of world class facilities

and 3 campuses in the making in Noida, Bangalore, and Chennai. HCL have 24,000 employees

spread across 6 cities.

Today, HCL is uniquely positioned in the IT space with offerings straddling software and BPO

products. The HCL enterprise operates through two entities listed in India- HCL technologies

and HCL info systems. While HCL technologies is the IT and BPO service arm of HCL, HCL info

systems is the IT hardware and system integration arm operating in the domestic market.

Ultimately HCL aspires to become one of the Indias truly recognizable global brands.

Cognizant

Cognizant Technology Solutions: A global services firm with a single-minded passion: dedicating

our global resources, industry intelligence and systems expertise to working with clients to

make their businesses stronger- more customer-centric, more competitive and more

productive.

Cognizant was No. 2 on the Forbes list of the 200 Best Small Companies, the fourth

consecutive year it has been named at or near the top of this list.

Cognizant also were the top U.S. outsourcing firm on business 2.0 magazines annual listing of

fast growing technology companies, the B2 100. In addition cognizant named the best U.S.

Company in India by the Indo American Chamber of Commerce.

Cognizant also continually add to our wealth of industry expertise and our array of services.

Most important, however is a team-based culture that is dedicated to the success of each

clients business.

Cognizant passionate focus on building clients businesses is exemplified by the fact that

JPMorgan Chase selected Cognizant as one of its Suppliers of the year for 2005, the only IT

systems integrator to be so honored.


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NIIT Technologies

It is a global IT Software and Services Company.

Services provided:

1. Application Development & Maintenance.

a) Custom Software Development.

b) Legacy Maintenance & Modernization.

c) Testing.

2. Package Solutions and Managed Services

a) SAP

b) GIS

c) Testing.

Global Process Assessments:

ISO 9001:2000 certification from KGMP

Assessed at level 5 of SEI-CMMi

Assessed at P CMM Level 3

BS7799 Standards of Security

Key Customers:

British Airways, Sabre, ING Group, SEI Investments, Office Depot, Toyota Motors, Holcim

Awards and Achievements:

Declared as a Business Super Brand bythe Super Brand Council.

Hindustan Times Power Jobs Award for HR Excellence for Innovative HR Practices.

Patni Computers

Patni Computers caters to its clients through its industry-focused practices including insurance,

manufacturing, financial services, telecommunications and technology- focused practices. Patni

has 23 international offices across Americas, Europe and Asia- Pacific.

Services offered:


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Application development

Application maintenance and support

packaged software implementation

Patnis clients look beyond value-proposition of cost reduction, productivity enhancements and

quality improvements and the focus has shifted to strategic business impact.

Awards and Achievements:

Received the Frost and Sullivan Customer Service Leadership Award in the IT services

market for 2006.

Ranked highest among Indian Offshore Supply Chain Solution Providers in a customer

satisfaction survey conducted by Forrester Research Inc.

Ranked at #6 in the list of Best Managed Global Outsourcing Vendors for 2006, by the

Brown & Wilsons Black Book of Outsourcing.

Rated 1stamong the Top 5 Engineering Services Providers, 2ndamong the Top leaders

in Human Capital Development , and 6th

among the Top 10 best performing IT service

providers, in the Global Services 100 published by Global Services and neo IT.

Received the Jamnalal Bajaj Fair Practices Award for 2006, bestowed by the Council for

Fair Business Practices, Mumbai.


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Questions asked about financial analysis:

What is the revenue that comes from company sector and utility

sector companies?

What is the revenue that comes from the other sectors otherthan energy sectors?

What are services and technologies they provide to the energy

and utility sector companies?

Who are the clients which outsourced their workfrom your

companies?

Which type of services they provide to the energy sector?

How financially stable is the organization?


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Ch 4: Analysis and Findings

Analysis for HCL

Total revenue in year 2005=$763.7 million



Increase in revenue:

2005 revenue- 2004 revenue=$196 million

2004 revenue-2003 revenue=$152.2 million

Growth in revenue:

=(196*100)/567.7=34.53% in year 05 and 04

=(152.2*100)/415.5=36.63% in year 04 and 03

Technology implanted by HCL

HCLs Aerospace practice currently counts several global aerospace majors including air frame

manufactures and tier 1 suppliers amongst its clients. The services offered by this practiceencompass embedded software, hardware designs, services, test solutions and applications

development. This practice is supported by practitioners combining over 2500 persons years of

experience in avionics specific programming languages, methodologies, tools, operating

systems, compilers and standards.

Analysis for Patni Computers





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Increase in revenue:

2006 revenue-2005 revenue=$128.6 milliion

2005 revenue-2004 revenue=$123.7 million

Growth in revenue:

=(128.6*100)/450.3=28.56% in year 06 and 05

=(123.7*100)/326.6=37.88% in year 05 and 04

Analysis of Accenture:

Total revenue in year 2006=$16646 in U.S currency



Increase of revenue in 2006-2005 and 2005-2004

That is 2006-2005=$1099

And 2005-2004=$1874

Growth in revenue:

=(1099*100)/15547=7.069% in year 06 and 05

=(1874*100)/13673=13.706% in year 05 and 04

Technology implanted by Accenture

Accenture outsourcing services cover:

1. Application Management

2. Bundled Outsourcing

3. Finance and Accounting

4. Human resources


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Technology implanted by Accenture

1. Exploration and Production Services for the Energy Industry

2. BP North America: SAP Application Management

3. Petrobras: Business performance

4. Halliburton: Outsourcing

Analysis of NIIT technologies:

Total revenue in year 2006=Rs 6075 millionTotal revenue in year 2005=Rs 5432 million

Total revenue in year 2004=Rs 4933 million

Increase in revenue:2006 revenue-2005 revenue=Rs 643 million

2005 revenue-2004 revenue=Rs 499 million

Growth in revenue:=(643*100)/5432=11.84% in year 06 and 05

=(499*100)/4933=10.12% in year 05 and 04

Analysis for Cognizant technologies:Total revenue in year 2006=$ 1424267

Total revenue in year 2005=$ 885830

Total revenue in year 2004=$ 586673

Increase in revenue2006 revenue-2005 revenue= $ 538437

2005 revenue-2004 revenue= $ 299157

Growth in revenue

=(538437*100)/885830=60.78% in year 06 and 05

=(299157*100)/586673=50.99% in year 05 and 04


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Suggestion

Accentures collaboration with energy sector clients in year 2006 and 2005 is less than 2004.

They can increase their profit with making more clients from energy sector and help them in

different areas. There are many other clients who want to implement technologies, target them

and enter to the new market.

So more and more collaboration with energy companies and also search the new market

increase the profit.

Energy and utility sector is wide sector which wants specific services to improve the profit. For

energy sector companies there are several services like:

Database management system. Storage technology

Simulation Software

Pipeline controlling using SCADA software

Erp implementation etc


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Conclusion

This report shows the contribution of energy sector in overall growth of IT consulting

companies. It also shows what the help taken by the energy sector companies and in which

area. Todays time the competition is high in energy sector companies and the cost involve is

also high so the company want best more technological development to improve their

business. The model will make a change roadmap for the consulting arms of these company

energy verticals to optimize their operations in conjunction with the changing business and

technological environment over the years. This model also shows the technological

development in aviation and transportation sector and revenue comes from that sector.


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References

Mishra, Ajay. Oil & Gas Vertical. Outlook express. 31 march, 2000. Pg 36-54. Print.

Pitts, Gordon. Future of oil & Gas. Oil & Gas technology 18 Feb. 2001:B3.CBCA Complete. Web. 27 Aug. 2006.

Thomas, Gerald. Growth of IT sector. Times Zero48.3 (1989): 221-43.JSTOR.Web. 27 Oct. 2008.

Grenfell, Wilfred Thomason.Accenture Solution. St. Johns: Creative, 1999.Print.

oil & gas verticals in it companies-report

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