CLIENT
One of the largest Middle Eastern oil market equity groups
INDUSTRY
Oil
PROJECT
Defining a new organizational structure, developing a framework agreement, a catalog of centralized services and a model for their billing
Customer's challenge
The client is one of the world's largest oil companies by production and a state-owned oil company in the Middle East region. As part of its 2030 transformation strategy, the client initiated the process of establishing a Shared Service Center (SSC) for such specialized functions as procurement, finance, human resources, legal services, management and administrative services, technology, communications, and reporting to regulators.
Our client’s challenge concerned the lack of a finalized and approved mechanism and tool for allocating the costs of services provided by the SSC to group companies. In addition, the group did not have a finalized framework agreement documenting the terms, conditions, and scope of intra-group services. The client also had not developed an updated organizational and management structure to reflect the new processes and structures of the SSC.
Our approach
Project workflow
The example of this project shows that clients are increasingly choosing to centralize previously less popular areas such as legal services, administration or purchasing. Thanks to multidimensional tools and a broad base of experts, KPMG is able to develop solutions tailored to specific processes, the specifics of the client and the sector in which that client operates.
Radosław Jankie
Partner, Consulting, Head of the Shared Services and Outsourcing Team
KPMG in Poland
Partner, Consulting, Head of the Shared Services and Outsourcing Team
KPMG in Poland
Outcome
Supporting the client in achieving strategic objectives aimed at a 20% cost reduction.
Buy-in of the companies' boards of directors for the proposed catalog of services, budget for intra-group services and framework agreement.
Deepening of trust between the SSC and group companies by clearly defining roles and cost allocation mechanisms and documenting the collaboration principles in the framework agreement.
Saving time in creating the budget for the following years with the potential for automation once the recommended IT solution is implemented.
Our support in numbers
1000+
resolved inquiries raised by group companies
100+
documented KPIs (current and recommended)
84
CFO-signed budgets covering shared services costs
76
shared services catalogs created and signed by CFO
Contact us
How can we help?
Subscribe | Manage Your Account
Do you want to receive notifications about publications and events?
Sign inSubmit request for proposal (RFP)
Learn more about how KPMG knowledge and technology can help your business.
Click to start