Inside Out: Creating an Outsourcing Business from Inside Your Corporation

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Inside Out: Creating an Outsourcing Business from Inside Your Corporation
By Jerry Parrish, President and CEO, Shell Services

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Two years ago, we decided as part of a new model for Shell Oil Company to create a 4th company called Shell Services. We would be free to compete in the marketplace and try to create whatever value that we could through our ability to develop capabilities customers would purchase. The philosophy behind it was that after a brief period of transition, Shell Services would become a market-based service company. Any potential customer could be expected to pick from companies in the marketplace where they thought they could get the best opportunity. And Shell Services was there to try and provide that opportunity we moved from a cost center concept to a marketplace concept very quickly. It's a very exciting idea, and so far, it's been successful.

At Shell Services, we are by nature a business process outsourcer, but we do see the nature of the relationship changing, probably because of integrated business systems such as SAP/R3. There is a continuing transformation of those relationships as technologies change. We certainly hope that our primary customer, which is Shell, considers itself an integrated part of our company. Our plan is to continue to transform Shell Services, to where our customers see us more and more as partners, and ultimately moving these partnership arrangements down the road into true risk-sharing relationships.

Publish Date: May 1997

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