TCS strikes new ‘risk-sharing’ deal to bring AI to Weatherford oilfield operations
Weatherford International has expanded its eight-year partnership with global IT consulting firm, Tata Consultancy Services. The new five-year deal will see the consultancy help the client introduce AI into its oilfield operations.
While the consulting sector is enduring a period of flat growth – something some industry commentators speculate is tied to the rise of AI doing the jobs consultants used to – there opportunities linked to the technology’s rise as well. As has been the case for the last decade, clients are still turning to consultants to help install new digital technologies in their operations: and AI is no exception to that trend.
Exemplifying this, a renewed partnership between Weatherford International and Tata Consultancy Services will see TCS leverage its expertise in automation, AI, and digital optimisation to drive enterprise-wide business transformation with the client. Structured around an outcome-based model, the deal also illustrates how billing might need to transform in the consulting sector looking ahead.
Weatherfield International is an energy services firm which conducts business in approximately 75 countries, and has approximately 19,000 team members representing more than 110 nationalities and 330 operating locations. Over the past eight years, TCS has collaborated with Weatherford to optimise and manage business process operations across finance, supply chain, and human resources. The new agreement will maintain the delivery of business process services while incorporating TCS’ transformation advisory capabilities.
However, in the coming five years, TCS’s compensation for this work will be directly linked to “the tangible efficiencies, cost reductions, and improved scalability” achieved across Weatherford’s finance, supply chains, and human resources. This approach moves beyond traditional time-and-materials engagements, “emphasising shared risk and reward”, according to a release from the firms.
New efficiencies
Girish Saligram, president and CEO at Weatherford International, said, “With the energy sector facing rapid technological advancements and heightened demands for efficiency, this renewed partnership with TCS underscores the strategic importance of integrating AI-driven solutions and process optimisation. These innovations are crucial not only to drive operational excellence but to position Weatherford as a leader in adapting to the evolving industry landscape. By leveraging TCS’ expertise, we aim to enhance scalability, foster innovation, and ensure sustainable growth while reinforcing our commitment to delivering unmatched value to our customers.”
There is confidence that the change in billing is something which will work well for both parties. The release from the companies also noted that TCS’ previous transformative improvements in shared services had resulted in around 50% reduction in Weatherford’s total cost of ownership across mission-critical operations.
Looking ahead, TCS plans to introduce advanced AI-driven solutions to streamline Weatherford’s finance and accounting processes, reduce costs, and improve scalability. Additionally, TCS’ advisory capabilities will support Weatherford in simplifying workflows, fostering innovation, and enabling outcome-based strategies aimed at maximising agility and long-term financial resilience.
Debashis Ghosh, a leader for TCS’ utilities, energy and resources offerings in the US, added, “This renewed agreement builds on a solid foundation of collaboration and operational excellence established over the past seven years. TCS has successfully implemented transformative strategies, leveraging its industry-leading AI-driven automation and process optimisation capabilities to consistently enhance operational efficiency. These efforts have delivered around 50% cumulative reduction in Weatherford’s total cost of ownership across critical shared service domains, underscoring the efficacy of our strategic partnership and technology-driven interventions.”
