A more rigorous approach to contractor management is helping asset-intensive companies in resources industries to succeed in the face of changes in the workforce, and build the high performance needed to win in the long run.
Under relentless pressure to control costs, companies in resources industries ranging from oil and gas to mining, chemicals and utilities are relying more than ever on outside providers to upgrade and maintain their critical production facilities and assets. But the management of contractors is not getting any easier, compelling companies to adopt a more rigorous approach.
Despite pursuing a number of asset management approaches, such as reliability-centered maintenance, predictive maintenance and operational excellence, companies often fall short in effectively managing the growing contractor workforce. Instead, they need to take a more rigorous approach that focuses specifically on building in-house contractor management capabilities and adopt a comprehensive framework that encompasses the end-to-end contractor management process.
In Accenture’s experience, those asset-intensive companies that have adopted this approach have seen savings of 10 percent or more in total cost of contracted services, as well as improvements in productivity, throughput and health, safety, security and environmental compliance.