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Published on the Shell sww (intranet) today: IT in Shell continues to support the businesses

By John Donovan

The information below was published on the Shell sww Intranet today, apparently in response to the recent massive global publicity generated by leaks to this website about Shell’s job cutting plans. We are indebted to the Shell insider who kindly supplied it to us.

It contains a comment by Shell CEO Jeroen van der Veer as part of an attempt to reassure Shell employees after the genuine concern expressed by Shell staff here and on other online forums in the last few days about the planned outsourcing of thousands of jobs.  

It is of course an embarrassing situation for Shell management that we are able to publish their private communication to staff on the same day it is published internally.

IT in Shell continues to support the businesses

03-Jan-2008

IT in Shell continues to focus on how best it can support the businesses drive to top quartile with scale, improved productivity and better connectivity.

In December 2007, following a rigorous selection process, Chief Executive Jeroen van der Veer, on behalf of the Royal Dutch Shell Board and Executive Committee approved a proposal to outsource a substantial part of IT infrastructure services to three external suppliers.

Jeroen commented: “This represents a major milestone for our colleagues in Shell IT. Although there is still more work to be done to finalise contracts, this is an excellent example of a function driving towards top quartile.”

This is the latest step in the Infrastructure Sourcing Programme that started in 2006. The aim of the programme was to understand options to deliver improved IT infrastructure services to Shell at a more competitive price through a new delivery model leveraging external service suppliers. Contract signing is anticipated for the end of March 2008.

As Shell’s businesses implement their strategies to achieve “More Upstream, Profitable Downstream” and top quartile, there has been an equal drive in the functions as well. IT provides solutions and differentiated technology that support the businesses in reaching top quartile. As a result, forecasts of business demand for IT services have continued to increase. Despite a good track record and performance, the IT function recognised that meeting these increasing demands in terms of scale, improved productivity and better connectivity, requires a step change in IT delivery.

With the new IT Infrastructure delivery model, services and control points that are strategic to Shell, are retained where as most of the service delivery will be provided by external suppliers. In short, IT will outsource delivery but maintain control. As a result a significant number of staff, currently employed by IT Infrastructure will be transferred to the new suppliers. The outsourced IT Infrastructure staff will continue to support Shell and the experience and knowledge they bring to their new employers is highly valuable.

Users of IT infrastructure services should not experience much difference in the follow-up after the signing of contracts with external suppliers. Continuity of services and operational stability are key success factors, which IT will continue to monitor closely. The real benefits will be seen in the coming years as Shell IT and the new suppliers begin the process of transforming delivery of services to top quartile in all areas, leveraging tools available on the market that will give benefits back to Shell.

Find out more on the Infrastructure Sourcing website < http://sww.shell.com/it/infrasourcing/index.html> .

For feedback or more information, contact Craig Chapman, Communication Manager for the Infrastructure Sourcing Programme.

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