SAP wins $19.75m IT contract with ONGC

Vol 6, PW 10 (17 Jul 02) News in Brief

German software giant SAP has signed a Rs95cr ($19.75m) contract with ONGC to help it better manage the flow of information within the corporation.

Signed on 9th July, the project's objective is to "optimise and standardize business processes for integrated information availability, availability of information on a real time basis and elimination of duplication of activities across business processes by capturing data at source point." Better decision support, better operational control and efficient cost management are some of the expected benefits. The project is scheduled to be completed in 30 months with a stabilisation period of four months and will cover all of ONGC's offices in India as well as those of ONGC Videsh, its overseas arm.

We are told that "protracted negotiations" led to the signing of the deal. ONGC also had to contend with vociferous opposition from some MPs against its decision to appoint SAP.