L&T TS’s Data and Document Management Model Enables O&G Client to Attain 10 Percent Cost Savings

Project Success Story

L&T Technology Services provides a broad range of solutions to meet the requirements of the oil & gas industry value chain; from upstream to downstream activities.  As part of these offerings the company provides capital investment model for process industries, which ensure that client investment remains profitable in the long run.  Recently, for an oil & gas client, L&T TS structured a standard data and document management model around the financial and budgeting aspects of the project.

Background and Challenge: Asset intensive oil & gas projects tend to be complex and expensive, and the related document management becomes quite complicated.  The conventional method of providing data and document management solutions for capital investment projects generally face issues related to data control and data security.

L&T TS executes capital investment projects for clients around the globe. Given the magnitude and geographic spread of the oil & gas projects, L&T TS had to come up with a pricing model that was predictable, had control over costs, resistant to market volatility, and synchronized with the client’s long-term service agreements.  Moreover, they had to provide a standard model or process for managing all the related data and documentation; to help bring more consistency, transparency, and prevent redundancy of tasks.

The Solution: In service level agreements, service credits are frequently used as a corrective mechanism, wherein the suppler credits the customer for its underperformance. In the capital investment model, L&T TS incorporated a services credit model to motivate quality output from the supplier.  They built a pricing structure that enabled precise financial planning and predictable budgeting for the client, as well as ensured that the costs remained as planned. Moreover, a unique model was prepared for data and document management to make the project implementation more efficient and transparent.

Quantifiable Benefits: L&T Technology Services took 50 percent ownership for this project, and developed a unique model for data and document management. The client achieved an average cost savings of 10 percent, along with the following business benefits:

  • Removed unwarranted expenses, thus reducing the cost pressure with savings in the range of 8-18 percent
  • Proper data and document management improved process and personnel productivity by about 3 percent
  • Standardization of data and document management across upstream, midstream and downstream segments of oil & gas, and for projects across geographies


It is important to have document management expertise as well as the industry domain knowledge to build successful document management model. With document management and control practices in place, budget overruns for large projects can also be avoided.  Moreover, with standardization in document management end users can have better visibility as well as tracking of numerous project related documents.

Keywords: Capital Investment, Data and Document Management, L&T Technology Services, Oil & Gas, ARC Advisory Group.


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