A company that makes software for the oil and gas industry says it’s facing challenges as it adapts to a new era
Convergent outsourcing service outsources its software development to a third-party vendor, and now says it has fewer employees than it used to.
The new software uses a third party’s platform and is developed using the company’s technology.
It has become a key player in the global oil and natural gas industry, providing development services to the companies that process and transport oil and other natural gas liquids.
Convergent is one of many outsourcing firms using software to deliver services to large companies.
“We need to be better at finding new opportunities and ways to deliver the value we deliver to customers, but at the same time, we also have to adapt to the reality of what our customers want and need,” says Michael Smith, chief executive of Convergent.
“That’s the challenge that we are now faced with as we try to respond to the oil industry.”
Convergent says it employs more than 200 people in Canada, and about 150 in the US.
But the oil sector has had a harder time than in the past, with a sharp drop in production and the closure of refineries around the world.
In response to the downturn, many companies have been looking for new ways to innovate and create jobs.
And, according to Smith, that means adapting to new business models and customer needs.
“I don’t think you can put a finger on the biggest challenge for us right now is finding new ways for us to provide value to customers in ways that are more sustainable and cost effective,” Smith says.
In other words, changing the business model.
As it tries to make sense of the changing business model, Convergent has started offering services that help companies make more money from the oil field.
The company offers services to oil companies to provide information on the location of oil wells and pipelines, and to monitor the flow of the oil from the wells to refineries.
It also helps companies to understand how much oil they have on hand, so they can manage the supply of that oil.
The services are designed to help oil companies reduce their production costs and help reduce the time it takes for their customers to find new oil and refine it.
But as oil prices have fallen, oil companies are now looking for ways to streamline their processes.
“It’s not a question of if the oil will come, it’s a question about when,” Smith said.
The industry has struggled to find ways to keep up with the demand for oil, which has been driving up prices.
Smith says there is a clear need for services to be more cost-effective and more efficient, and that it has taken a “big leap forward” to the future.
“Now that we have had a change in technology and in the nature of the way we work and the nature we work in that we’ve got a new business model that’s not only much better than the old one, but it’s much more cost effective, it makes sense to use,” he says.
Smith points to Convergent as an example of an outsourcing company trying to adapt.
“When we looked at this industry a couple of years ago, and we were talking about a number of other companies that were going through the same challenges that we were, we saw a lot of opportunities for us,” Smith adds.
“So we decided to go ahead and do this.”