A recent roundtable organised by PwC India with global capability centre (GCC) leaders in the oil and gas (O&G) industry brought to light the value GCCs could unlock in this sector through centralisation, consolidation and automation. Rajesh Ojha and Deepak Mahurkar provide the lowdown.
The O&G sector is up against several challenges today: supply chain and technological disruptions, uncertain macroeconomic conditions, and the most pressing one – the urgency to go green.1 Sustainability has taken centre stage in discussions within the O&G sector, prompted by the need to accelerate transition to renewables, ensure energy security and keep up with evolving regulations on carbon emissions. For O&G companies, navigating these difficulties requires innovative solutions and enhanced operational efficiencies.
This has led major players in the sector to set up or expand their GCCs in India. With their expertise and cost-effective solutions in analytics, technology and process optimisation, O&G GCCs are uniquely positioned to help the parent organisations and, at times, also their clients to address these challenges effectively.
Today, there are around 20 O&G GCCs in India – employing 50,000 people2 – that are fast making their presence felt in the carbon-intensive industry, be it through adopting emerging technologies such as artificial intelligence (AI) to track emissions or to lead advancements via research and development (R&D)-driven innovations. They play their part through centralisation, consolidation and automation, unlocking value in terms of significant cost savings, enhanced operational efficiency and data-driven decision making across the entire value chain.
Centralised IT environments and data storage and processing power enable faster software delivery cycles and reduced failure rates, adoption of cloud computing that offers economies of scale and agility, and advanced analytics that help optimise production processes and identify new revenue opportunities. Consolidated infrastructure and operations (I&O) functions within GCCs help streamline IT management, optimise resource utilisation (hardware, software, personnel), and enhance security through centralised controls. Automation technologies offer significant cost-saving opportunities, accurate data interpretation and predictive maintenance to minimise downtime, reduce repair costs, and enhance overall operational safety, in the process freeing up employees to focus on higher-value activities.
Figure 1: Journey of O&G GCCs
Source: PwC analysis
Vikas Kalucha
Managing Director – GCC Markets
The O&G sector is rapidly adopting clean energy technologies and sustainability initiatives, with AI revolutionising carbon capture and emissions management. The industry must navigate market volatility, ensure efficient operations amalgamated with supply chain resiliency, and comply with ESG (guidelines). GCCs are crucial for cost optimisation and automation, and to drive secure operations, demonstrating a commitment to reducing carbon footprints.”
Sumit Srivastav
Partner and Leader, Intelligent Automation
In today’s evolving business landscape, for companies in the O&G sector, cost reduction, productivity enhancement, revenue growth and sustainability are paramount. Faced with economic and operational challenges, GCCs have emerged as strategic enablers, prioritising business growth. Through business integration and automation, GCCs are able to streamline operations, minimise downtime, and optimise resources, driving digital transformation and reshaping the sector.”
Himanshu Ghawri
Partner, Data and Analytics
The O&G sector relies heavily on the data generated from various sources across the value chain, and organisations need to continuously manage these different datasets. Therefore, the need for robust data management and advanced analytics capabilities is paramount to drive comprehensive analyses, informed decision making, identification of improvement areas and cost reduction initiatives.
Data and analytics leverages technologies such as AI/ML/GenAI to extract actionable insights. These insights can be used to optimise the exploration and production process, predict equipment maintenance needs, enhance safety protocols, improve supply chain management, and validate various emission factors for an organisation’s ESG goals.”
Dheeraj Gangrade
Partner and Leader – Consulting, GCC
The oil and gas industry is undergoing a significant transformation, driven by technological advancements, a push for sustainability and an evolving geopolitical landscape. As GCCs become increasingly integral to this sector, they are poised to lead the way in innovation, efficiency and cost-effectiveness. At PwC India, our consulting services are designed to support the growth of oil and gas GCCs. We help GCCs optimise operations, enhance digital capabilities, and navigate the complexities of the global market, ensuring they remain at the forefront of industry advancements and are well-positioned for future success.”
Manu Dwivedi
Partner and Leader, Cybersecurity and Risk Consulting, GCC
In today’s business landscape, the O&G GCC sector is witnessing remarkable growth, propelled by technological innovations, rising efficiency requirements and a substantial move towards sustainable energy practices. As the industry undergoes these transformative changes, PwC India’s Risk Consulting services offer essential experience and value addition. By employing thorough risk management strategies, providing regulatory compliance guidance, and utilising cutting-edge technological solutions, PwC India aids GCCs in optimising operations, reducing potential risks by #RethinkingRisk, and seizing future opportunities, ensuring robust growth and resilience in this shifting environment.”
Sivarama Krishnan
Partner and Leader, Cybersecurity and Risk Consulting, GCC
The oil and gas industry is exposed to a multitude of risks arising in the wake of the changing regulatory landscape, geopolitical developments, economic volatility, technological disruptions and climate change. Organisations in these sectors need a robust, proactive risk management plan that is aimed at building long-term resilience and value creation. It is also imperative that business leaders in these organisations rethink risks to identify the opportunities and harness the possibilities for transformation that they present, to build fit-for-future organisations.”
Shailesh Monani
Subject matter expert
The future of GCCs in the O&G sector is poised for transformation, driven by technological advancements and the need for cost optimisation. As the industry navigates the energy transition, GCCs are expected to play a pivotal role in fostering innovation, managing complex supply chains and enhancing operational efficiencies. Tax considerations for these centres are critical, with implications on cross-border transactions, transfer pricing, permanent establishment, global mobility compliances, withholding tax, and the OECD BEPS project. The evolving tax landscape will require GCCs to maintain agility in their tax planning and reporting strategies to mitigate risks.”
Figure 2: Functions and capabilities of an O&G GCC
Click on each section to learn more.
Next-gen R&D, new technology, advanced/ smart material research, sustainable material research
20%
Software development and integration, infrastructure
16%
F&A, HR, procurement, supply chain support, customer services, legal services
Engineering services, operations support, midstream operations, refinery operations
Source: PwC analysis
Note: The percentages above are based on estimated averages and show that 36% of an O&G GCC’s functions in India are dedicated to ER&D, 28% of its functions to ISIT, 20% to innovation and 16% to shared services.
GCCs in the O&G space focus on maximising value, strengthening collaboration and standardisation, and enhancing regulatory compliance. This article – based on PwC India’s roundtable discussion with relevant stakeholders – narrows down on four key areas where GCCs serve as significant value drivers. These include helping:
Many O&G companies that use outdated, manual methods for energy management to comply with stringent environmental regulations run the risk of being penalised for excessive emissions. O&G companies’ chief technology officers (CTOs) are required to optimise operating expenses while improving environmental performance, rendering energy management essential.
Moreover, oil refineries often struggle to accurately monitor and reduce methane emissions across multiple sites. Downstream operations – which include converting O&G into the final product – contribute significantly to methane emissions. Advancements in AI vision technology can allow refiners to detect leaks and methane emissions in real-time using visual and infrared video data.
GCCs in India are anchoring the environmental, social and governance (ESG) agenda for their parent companies. As global regulatory bodies and governments push for transparent reporting of carbon emissions, O&G companies are increasingly depending on their GCCs in India to fulfil these requirements. GCCs, too, are equipping themselves with advanced analytics and predictive capabilities, aiming to provide accurate insights into their parent company and clients’ carbon footprint and facilitate alignment with net-zero goals. They could prove to be crucial allies as they leverage AI algorithms to detect and address energy loss caused by asset flaws or process anomalies with real-time monitoring.
The IT departments of GCCs therefore play a crucial role in ensuring seamless integration of AI platforms with diverse data sources while addressing security and compliance concerns associated with sensitive emissions and financial data.
Additionally, GCCs in India could drive hydrogen adoption for O&G companies, leveraging financial incentives the Government of India is providing for production of green hydrogen under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, a part of the National Green Hydrogen Mission (NGHM).3 This shift has its challenges though as it would involve significant process adaptation and machinery retrofitting, along with costs associated with infrastructure development, technological innovation and regulatory compliance. Integrating green hydrogen into supply chains and value chains would also require coordination among stakeholders and clear policy frameworks to incentivise and facilitate adoption, and GCCs could help by facilitating collaboration among the industry, the Government and technology providers.
O&G GCCs are increasingly focusing on supply chain transparency as a key priority. By enhancing visibility and traceability throughout the supply chain using technologies like blockchain and the internet of things (IoT), GCCs can ensure ethical sourcing practices and reduce carbon emissions. This integrated approach enables GCCs to meet regulatory requirements, align with stakeholder expectations, and drive sustainability across the entire supply chain.
O&G operations often span vast geographical distances, making supply chain management inherently complex. GCCs, positioned as centralised hubs of technical expertise and collaboration, can significantly enhance supply chain efficiency, and ensure consistency and operational resilience by establishing standardised procurement and logistics processes across the organisation. They can foster collaboration between geographically dispersed teams, facilitate information sharing and coordinated responses to supply chain disruptions, and offer cost-effective solutions to optimise complex order-to-cash (OTC) to source-to-pay (STP) processes.
An O&G GCC was looking to optimise its purchasing process. It also sought to place bulk purchase orders and process sales orders with limited manual intervention. PwC India developed a solution to automate the sending and processing of invoices along with a single application to automate both purchase order (PO) and sales order (SO) creation. This engagement led to fewer data quality issues and improved efficiency.
GCCs also optimise processes by deploying robotic process automation (RPA) to automate repetitive back-office tasks associated with procurement and logistics, and integrating AI algorithms in the supply chain processes to enable demand forecasting, proactive inventory management, and route optimisation. Further, they are equipped to establish and manage relationships with key suppliers on a global scale, negotiating better pricing and ensuring consistent quality standards.
Digital transformation of asset-heavy industries such as O&G is only possible with appropriate IT strategies in place. There is now a significant impetus for O&G industries to invest in emerging digital technologies like AI, augmented and virtual reality, cloud, edge computing, and IoT to generate higher revenue.4 The industry, as the roundtable indicated, is leveraging AI and data science to enhance operations across upstream (exploration, drilling and extraction), midstream (processing, storing, transporting and marketing) and downstream sectors. Data management can be especially challenging in the upstream segment due to the sheer volume of data generated, including seismic data, geochemical data, reservoir models, well logs, and drilling logs. The need to analyse and integrate this data adds to the complexity. There is also the need to automate repetitive and labour-intensive tasks in this segment, such as extensive documentation.
GCCs therefore have a role to play. They offer robust solutions for data storage and analysis. Their advanced analytics capabilities can harness vast datasets to optimise production processes, predict equipment failures and identify new revenue opportunities. IoT sensors integrated with automation software enable real-time monitoring of pipelines and wells. Predictive maintenance algorithms analyse sensor data to identify potential equipment failures before they occur. This proactive approach minimises downtime, reduces repair costs and enhances overall operational safety.
An O&G GCC that wanted to establish an integrated data and digital capability for various lines of business faced the uphill task of coordinating between cross-geographical teams. PwC India built a comprehensive suite of digital products capturing and automating the business processes involved and created a centralised data lake to accommodate multiple data systems as a single data source platform for all required applications.
Another focus area for chief information officers (CIOs) is enhancing business processes using intelligent automation (IA) which includes adding AI capabilities to RPA. IA has already transformed back- and front-office processes for O&G companies. Democratising automation by empowering non-technical workers with low-code/no-code platforms is crucial for maximising benefits, anticipating steady growth in IA adoption across the oil value chain and business lines.
An O&G GCC which had started its automation journey sought an RPA centre of excellence (CoE) maturity assessment, as well as a roadmap for sustainable, scalable growth of the CoE. PwC India led the seamless transition from RPA to IA, and identified and bridged the gaps within the GCC that were getting in the way of large-scale automation. The GCC was therefore able to achieve increased return on investment in automation.
The digital transformation of the O&G industry is bringing about significant cyber vulnerabilities. Traditional, fragmented approaches to third-party risk management are passé. GCCs are frontrunners here, having become bastions of cybersecurity excellence for their parent organisations.5 Top multinational companies are choosing to set up their cyber CoEs in India due to cost efficiency, proximity to key markets, and availability of IT talent.
GCCs significantly strengthen the industry’s collective cyber resilience by establishing standardised frameworks and a centralised knowledge repository to store and share threat intelligence, and develop and implement an industry-specific zero-trust framework to accelerate zero-trust adoption. This proactive approach safeguards critical infrastructure and ensures operational continuity.
GCCs are also investing in advanced threat detection, continuously evaluating and implementing cutting-edge threat detection and prevention technologies, fostering collaboration for an exchange of best practices with industry peers and external cybersecurity experts, developing training programmes for employees to equip them to identify and report suspicious activity, and leveraging automation tools to streamline routine tasks within the security operations centre, allowing personnel to focus on more strategic initiatives.
An O&G GCC aspiring for carbon neutrality by 2050 acquired several clean energy companies but struggled with cybersecurity alignment among the acquired companies. PwC India conducted an organisational compliance assessment to identify gaps, drafted cybersecurity policies, and carried out cybersecurity risk assessment and information security awareness training for the acquired companies.
Housing both cyberattack and defence experts, GCCs can serve as central hubs for managing global cyberthreats. This fosters a more coordinated and efficient response to security incidents. GCCs also need to iron out discrepancies arising out of engaging third-party vendors, over-reliance on whom can result in a wastage of resources and a complex risk landscape, including redundancy and inconsistency. Besides, the sheer volume of data from third-party assessments could overwhelm companies, hindering the identification of critical vulnerabilities. As a central repository for storing and sharing threat intelligence across the industry, GCCs facilitate a collaborative approach to cybersecurity. Moreover, new modes of working, such as remote work setups, demand additional cybersecurity guardrails. GCCs can offer support here as well.
An O&G GCC which employed a remote working model wanted to build a stronger team of security assessors. PwC India helped the GCC streamline risk identification and risk mitigation workflows while also incorporating robust controls to safeguard the GCC’s assets and information.
The workforce in the GCCs within the O&G sector is undergoing a profound transformation driven by digitalisation, automation, and the need for sustainability. To adapt to these changes, there’s a growing demand for skilled labour across various disciplines, necessitating investments in training, recruitment and talent development initiatives.
As the world strives to enhance global energy security, achieve affordability and reduce emissions, India’s dynamic O&G sector is showing promise. Supported by a robust network of GCCs, the industry is poised to generate new opportunities and position India as a key player in the global energy landscape. The support from GCCs in India is helping bring digital technology prowess to the parent company’s operations spread globally while managing risks and centralised functions of operations. This paves the way to more connected, cost-efficient and data-driven operations for the O&G industry.
Also contributing to this article were Vishnupriya Sengupta, Abhishek Jobanputra, Ruchika Uniyal, Jhanvi Sharma, Megha Adhikari and Aayush Misra.
While GCCs focus on optimising value and approaching challenges head-on by developing newer competencies, this article narrows down on four key areas where the offshore units can add maximum value for their parent organisations in the O&G sector. These include helping parent organisations to
An O&G GCC in India with clients across several sectors aims to be carbon neutral by 2050. To that effect, it has rolled out a global ESG strategy and needed experts to assess the current maturity of its decarbonisation technology meant to help its clients measure and manage their emissions. Our business team stepped in to do the assessment.
This isn’t a one-off instance. As global regulatory bodies and governments push for transparent reporting of carbon emissions, O&G companies are increasingly depending on their GCCs in India to fulfil these requirements. The GCCs in turn are equipping themselves with advanced analytics and predictive capabilities to provide accurate insights into their parent company’s carbon footprint and facilitate alignment with net-zero goals.
In fact, it is well known now that GCCs in India are anchoring the environmental, social and governance (ESG) agenda for their parent companies. Further, many O&G companies that use outdated, manual methods for energy management to comply with stringent environmental regulations run the risk of being penalised for excessive emissions. The chief technology officers (CTOs) of O&G companies are required to optimise operating expenses while improving environmental performance, rendering energy management essential. GCCs could prove to be crucial allies here as they could use integrated energy management tools that leverage AI algorithms to detect and address energy loss caused by asset flaws or process anomalies with real-time monitoring.
Oil refineries too often struggle to accurately monitor and reduce methane emissions across multiple sites. Downstream operations – which include converting O&G into the final product – contribute significantly to methane emissions. Advancements in AI vision technology can allow refiners to detect leaks and methane emissions in real time using visual and infrared video data.
In view of this laser focus on carbon emissions, IT departments of GCCs play a crucial role in ensuring seamless integration of AI platforms with diverse data sources while addressing security and compliance concerns associated with sensitive emissions and financial data. The large amount of data generated by O&G enterprises, power plants and data centres across the world increases energy consumption and carbon emissions.4 Technologies such as edge computing can help as they allow devices to be placed closer to where data is generated and to process it locally, thus helping reduce energy consumption as not all data needs to be sent to a centralised location.5
Additionally, GCCs in India could also drive hydrogen adoption for O&G companies, leveraging financial incentives the Government of India is providing for production of green hydrogen under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, a part of the National Green Hydrogen Mission (NGHM).6
In fact, as part of its energy transition goals, the Government of India is looking for cleaner alternatives to coal and other polluting fuels. The Government has stated its intent to move towards a gas-based economy by increasing the share of natural gas in India’s primary energy basket from the current 7% to 15%.7 O&G GCCs in India could therefore push for natural gas to be used in long-haul transportation. For instance, LNG, in its cryogenic liquid form, occupies up to three times less space compared to CNG, offering higher energy density and a greater vehicle range, making the fuel ideal for long-haul, heavy-duty trucks that currently depend on diesel. The ‘greener trucking’ can help O&G companies significantly cut down on emissions.
This shift, however, will pose challenges for O&G companies. It would involve significant process adaptation and machinery retrofitting. The industry may face complexities in modifying existing processes and equipment to accommodate green hydrogen, as well as bear the costs associated with infrastructure development, technological innovation and regulatory compliance. Integrating green hydrogen into supply chains and value chains would require coordination among stakeholders and clear policy frameworks to incentivise and facilitate adoption. GCCs can help overcome these challenges by facilitating collaboration among the industry, the Government and technology providers.
An O&G GCC was looking to optimise its purchasing process. It also sought to place bulk purchase orders and process sales orders with limited manual intervention. Our business teams developed a solution to automate the sending and processing of invoices along with developing a single application to automate both purchase order (PO) and sales order (SO) creation. This engagement led to fewer data quality issues and improved efficiency.
O&G GCCs, it is evident, are increasingly focusing on supply chain transparency as a key priority. By enhancing visibility and traceability throughout the supply chain using technologies like blockchain and the internet of things (IoT), GCCs can ensure ethical sourcing practices and reduce carbon emissions. This integrated approach enables GCCs to meet regulatory requirements, align with stakeholder expectations and drive sustainability across the entire supply chain.
O&G operations often span vast geographical distances, making supply chain management inherently complex. GCCs, positioned as centralised hubs of technical expertise and collaboration, can significantly enhance supply chain efficiency and ensure operational resilience. By establishing standardised procurement and logistics processes across the organisation, GCCs can ensure consistency and efficiency in the supply chain.
The offshore units can foster collaboration between geographically dispersed teams, facilitating information sharing and coordinated responses to supply chain disruptions. The O&G supply chain involves complex processes – from order to cash (OTC) to source to pay (STP) – and GCCs offer cost-effective solutions to optimise these processes.
Some other ways GCCs can optimise processes are by deploying robotic process automation (RPA) to automate repetitive back-office tasks associated with procurement and logistics, and integrating AI algorithms in the supply chain processes to enable demand forecasting, proactive inventory management, and route optimisation. Furthermore, GCCs can establish and manage relationships with key suppliers on a global scale, negotiating better pricing and ensuring consistent quality standards.
An O&G GCC that wanted to establish an integrated data and digital capability for various lines of business faced the uphill task of coordinating between various cross-geographical teams. Our business team built a comprehensive suite of digital products capturing and automating the business processes involved and created a centralised data lake to accommodate multiple data systems as a single data source platform for all required applications.
Digital transformation of asset-heavy industries such as O&G is only possible with appropriate IT strategies in place. There is now a significant impetus for O&G industries to invest in emerging digital technologies such as AI, augmented and virtual reality, cloud, edge computing, and IoT to generate higher revenue by preventing value leakage through efficient coordination and automation.8
The industry is leveraging AI and data science to enhance operations across upstream (exploration, drilling and extraction), midstream (processing, storing, transporting and marketing) and downstream sectors. Data management can be especially challenging in the upstream segment due to the sheer volume of data generated, including seismic data, geochemical data, reservoir models, well logs and drilling logs. The need to analyse and integrate this data adds to the complexity. Moreover, repetitive and labour-intensive tasks in this segment, such as extensive documentation, need to be automated.
GCCs can come in here to offer robust solutions for data storage and analysis. Their advanced analytics capabilities can harness vast datasets to optimise production processes, predict equipment failures and identify new revenue opportunities. IoT sensors integrated with automation software enable real-time monitoring of pipelines and wells.
Predictive maintenance algorithms analyse sensor data to identify potential equipment failures before they occur. This proactive approach minimises downtime, reduces repair costs and enhances overall operational safety. As mentioned earlier, data-driven approaches require strong IT backing which GCCs can provide for O&G companies. By consolidating infrastructure and operations (I&O) functions within GCCs, companies can streamline IT management, optimise resource utilisation (hardware, software, personnel) and enhance security through centralised controls.
An O&G GCC which had started its automation journey sought an RPA centre of excellence (CoE) maturity assessment, as well as a roadmap for sustainable, scalable growth of the CoE. Our business team led the seamless transition from RPA to intelligent automation (IA). Specialists also identified and bridged the gaps within the GCC that were getting in the way of large-scale automation. The GCC was therefore able to achieve increased return on investment in automation.
Enhancing business processes using IA that includes adding AI capabilities to RPA is another focus area for chief information officers (CIOs). IA has already transformed back- and front-office processes for O&G companies. Democratising automation by empowering non-technical workers with low-code/no-code platforms is crucial for maximising benefits, anticipating steady growth in IA adoption across the oil value chain and business lines.
Digital technologies are also reshaping the oil exploration and production (E&P) sector, particularly through the analysis of data related to geology and geophysics (G&G) which is important for finding and extracting oil reserves. Small and mid-size enterprises (SMEs) in this sector face challenges with complex data environments, limited interoperability between software applications, and inefficient data handling processes. To address issues such as delay in project cycle and suboptimal resource utilisation, E&P companies are turning to cloud platforms and leveraging analytics, AI, and automation technologies to upgrade data management practices. By automating manual tasks and improving data quality assurance, companies can enhance the efficiency of G&G workers and optimise resource allocation.
An O&G GCC aspiring for carbon neutrality by 2050 acquired several clean energy companies but struggled with cybersecurity alignment among the acquired companies. Our business team conducted organisational compliance assessment to identify gaps, drafted cybersecurity policies, and carried out cybersecurity risk assessment and information security awareness training for the acquired companies.
An O&G GCC which employed a remote working model wanted to build a stronger team of security assessors. Our business team helped the GCC streamline risk identification and mitigation workflows while also incorporating robust controls to safeguard the GCC’s assets and information.
The digital transformation in the O&G industry is resulting in significant cyber vulnerabilities. Traditional, fragmented approaches to third-party risk management are no longer sufficient. In this aspect as well, GCCs are frontrunners. GCCs in India have become bastions of cybersecurity excellence for their parent organisations.9 Top multinational companies are choosing to set up their cyber CoEs in India due to cost efficiency, proximity to key markets and availability of IT talent.
For the O&G sector too, GCCs can significantly strengthen the industry’s collective cyber resilience by establishing standardised frameworks and accelerating zero-trust adoption. This proactive approach helps set up guardrails that safeguard critical infrastructure and ensure operational continuity. Partnering with trusted advisors could enable GCCs to emerge as global leaders in cybersecurity.
Housing both cyberattack and defence experts, GCCs can serve as central hubs for managing global cyberthreats. This fosters a more coordinated and efficient response to security incidents. GCCs can iron out a lot of discrepancies arising out of engaging third-party vendors, over-reliance on whom can result in a wastage of resources and a complex risk landscape, including redundancy and inconsistency.
Besides, the sheer volume of data from third-party assessments could overwhelm companies, hindering the identification of critical vulnerabilities. As a central repository for storing and sharing threat intelligence across the industry, GCCs facilitate a collaborative approach to cybersecurity. Moreover, new modes of working, such as remote work setups, demand additional cybersecurity guardrails. GCCs may also offer support here.
While GCCs are driving innovation and efficiency within the O&G sector, they are faced with certain challenges. One of the common challenges is parent organisations perceiving the GCC as simply a cost arbitrage hub sans metrics to measure success. With limited budget allocation for innovation from the parent company, or decision making being restricted to the leadership at the headquarters, the scope of work for the GCC is limited. Some other obstacles that GCC may face include:
GCCs have ramped up hiring and have overtaken IT services for the first time in India to become the top hirers of tech talent in the first quarter of FY25.10 The demand for skilled tech professionals is continuously growing with the widespread use of emerging technologies like AI, ML, data analytics, IoT and cloud computing. The shortage of quality skilled talent has led to increased competition for qualified candidates.
Advancements in technology are reshaping job roles and skill requirements within the O&G sector. Many existing employees are required to train in new technologies, processes and methodologies to remain relevant in their roles or transition to new ones. But implementing comprehensive workforce reskilling programmes can be resource intensive.
Balancing the need for reskilling with financial constraints requires strategic planning and prioritisation. GenAI, already being used by O&G GCCs to drive efficiency, productivity and safety, can be an enabler in this regard. With a substantial portion of the workforce retiring, GenAI can be used to capture and transfer knowledge from retiring experts to new hires, facilitating faster and more efficient onboarding and training.
Market volatility is a chronic problem for the O&G industry. Fluctuations in O&G prices, driven by factors such as geopolitical tensions, supply-demand dynamics and economic conditions, could render it difficult for GCCs to plan and execute long-term strategies. To tackle geopolitical risks such as trade disputes, sanctions, political instability and regulatory changes, GCCs require a comprehensive risk management strategy and proactive engagement with relevant stakeholders.
In 2024 alone, several factors broadly affected the O&G market. International crude prices, which had jumped to a five-month high of over USD 92 a barrel in April 2024, slumped to below USD 81 in August, after concerns over demand strength and worsening conflict in the Middle East.11 Global gas prices dropped to record lows in Q1 2024, while global LNG production underperformed in the second quarter and geopolitical upheavals fuelled price volatility.12
Natural disasters like flooding and hurricanes disrupt crude oil production and refinery operations, and could also impact natural gas production.13 Efforts are on by the Government to provide supportive legislative and regulatory frameworks to promote the use of natural gas and balance the interests of producers and consumers. The Government plans to invest USD 67 billion in the natural gas sector in the next six years to provide stable pricing for end customers.14
GCCs also need to ensure regulatory compliance for the O&G industry, which is subject to complex frameworks at local, national and international levels. Ensuring compliance with regulations related to environmental protection, safety standards, labour laws and taxation requires significant resources and expertise. GCCs can leverage automation and data analytics to streamline compliance processes and minimise the risk of regulatory violations. Moreover, investing in technology is crucial as the current infrastructure lacks advanced technologies for efficient extraction, transportation and storage of natural gas. Enhanced data analytics and smart grid technologies could help optimise distribution and reduce losses, thereby bolstering the natural gas sector’s overall efficacy.
As the world strives to enhance global energy security, achieve affordability and reduce emissions, India’s dynamic O&G sector is showing promise. Supported by a robust network of GCCs, the industry will generate new opportunities. The growing presence of GCCs is positioning India as a key player in the global energy landscape, with the offshore units playing a pivotal role as hubs of knowledge and best practice exchange, and agile leadership development, setting up their parent organisations for success. The support from GCCs in India is helping bring digital technology prowess to the parent company’s operations spread globally while managing risks and centralised functions of operations.
Going forward, centralised GCCs can help in laying out a digital roadmap for O&G companies by
Using a digital-first approach, these GCCs can create early warning systems and ensure risk mitigation and management. For instance, they can enable connected systems using IoT and manage global contracts using blockchain technology. Thus, GCCs can pave the way for a more connected, cost-efficient and data-driven operations for the O&G industry.
