ONGC, IBM Consulting team up to enhance vendor payment process

In an effort to streamline and standardize vendor payments, state-owned oil and gas company ONGC has partnered with IBM Consulting on Thursday to launch the ONGC Shared Finance Services (SFS) in Noida. According to the company, this initiative represents a significant step towards improving the overall vendor experience.

The SFS will centralize and standardize all vendor payments for ONGC, expediting the processes to enhance the vendor experience. The Chairman and CEO of ONGC, Arun Kumar Singh, inaugurated the center in Noida on December 14, 2023, in the presence of ONGC Director (Finance) Pomila Jaspal and IBM Consulting (India/South Asia) Country Managing Partner Kamal Singhani.

The event also included the participation of OVL's MD Rajarshi Gupta, ONGC Director (Exploration) Sushma Rawat, Director (Human Resources) Manish Patil, OVL's Director (Finance) Anupam Aggarwal, CVO ONGC Ranjan Prakash Thakur, MRPL Director (Finance) Vivek Tongaonkar, and the senior leadership team of IBM.

The SFS will serve as a centralized hub for processing vendor invoices, updating vendor master information, and promptly addressing vendor queries through a digital assistant and ticketing tool provided by IBM Consulting. The goal of the SFS is to establish uniform standardized processes that enhance operational efficiency and improve the overall vendor experience.

According to a statement from IBM, The SFS adopts a hybrid workforce model, bringing together ONGC and IBM Consulting resources in a harmonized environment to promote growth and operational efficiency with best practices. Additionally, the SFS incorporates digitalized compliance processes, handling centralized compliance for TDS under the GST and Income Tax Act. Centralization simplifies business operations by using a Single TAN and centralizing forex activities. System-driven concurrent audit processes and tax compliance measures demonstrate the SFS's commitment to transparency and adherence to regulatory standards.

Tokens will be generated for unresolved queries, with the aim of resolving them within a 48-hour timeframe. This initiative reflects ONGC's dedication to transparent and uniform processes, stakeholder satisfaction, and collaborative growth. The anticipated benefits of the SFS include faster processing of vendor payments, improved record-keeping, increased efficiency, and strengthened vendor relationships.

"The SFS exemplifies the commitment of ONGC and IBM to continual process improvements and lays the groundwork for future stakeholder-friendly initiatives, such as intelligent workflows and business operations powered by generative AI," the statement said.

In a separate announcement, ONGC said it is actively addressing concerns about climate change by working towards achieving net-zero emissions for Scope-1 and Scope-2 by 2038. The company recognizes the importance of contributing to sustainability efforts and reducing carbon emissions, aligning with the broader movement towards providing low-carbon and sustainable products.

As of March 31, 2023, ONGC's total installed renewable energy capacity is 189.52 MW, consisting of 36.52 MW of solar energy and 153 MW of wind energy.