CHARLOTTE, N.C.--(BUSINESS WIRE)--TCG Consulting, a global professional services firm specializing in bringing efficiency and cost savings for corporate travel, meetings, payment and expense management functions, today announced a landmark agreement with Houston-based KBR, one of the world’s premier technology, engineering, procurement, and construction companies.
Through this innovative new business model, TCG will develop and implement a strategic global program optimization plan as well as transition and outsource KBR’s existing travel team of experts to TCG. This agreement will result in creating a new TCG-branded office in Houston to serve KBR and clients across the oil, gas and field services sectors as well as other prominent industries. This agreement enables the legacy KBR travel team to continue to serve KBR as well as work with a wider variety of other TCG clients, across multiple industries, both in Houston and globally.
The agreement projects to deliver significant savings to KBR over a multiyear period as well as enhance the overall traveler experience and reduce organizational risk. This unique new business model enables the efficient, lower cost provisioning of corporate travel services at a pivotal time for the energy sector, addressing current market conditions while maintaining scalability provisions for longer term growth.
“We are excited to announce this agreement with TCG to deliver outsourced program management travel solutions, which we anticipate will help us improve efficiencies and significantly lower costs, while maintaining and enhancing quality service levels to the KBR traveler,” said Ian Mackey, EVP Human Resources, KBR.”
KBR’s decision to outsource corporate travel, meetings, payment and expense management functions to TCG was driven by TCG’s eight years of previous success consulting on travel services for KBR combined with TCG’s innovative, all-inclusive and scalable solutions. “Also important in our decision, was TCG’s commitment to offer the corporate travel team positions within their new Houston office to continue to support KBR plus work with other clients – making this a win for all,” continued Mackey.
“TCG identifies and delivers corporate travel transformation via cost reduction and avoidance, strategic integration, and process efficiency strategies while ensuring a positive traveler experience,” said TCG Managing Partner Albert Taras. “We’ve seen sharply increased demand for our services, especially in the oil, gas and field services sector, as firms see an urgency to reduce their cost structures in today’s market. Travel and meetings are usually the second largest indirect expense a company can have, many times approaching two percent of total company revenue. Reducing corporate travel costs as a percentage of revenue helps deliver tangible EPS improvements for our clients. Our new KBR travel team members are global experts in the rigorous and complex world of energy industry travel. They will continue to provide superior support while TCG delivers global expertise to bringing efficiency to travel and travel-related services.”
The strategic transformation agreement and opening of the new TCG office in Houston comes at a critical time. With the likelihood of oil prices remaining lower for the foreseeable future, every part of the sector is looking to tighten capital discipline and improve returns.
Delivering TCG’s best practices in program optimization across the oil and gas sector meets the sector’s urgent short term need to reduce cost while creating a strong foundation for clients to scale and drive greater profitability once oil prices start to increase. The average return on capital of the largest European and US oil companies dropped from 21 percent in 2000 to 11 percent in 2013, even though the average price of benchmark Brent crude rose from $29 to $109 per barrel over that period. Cost increases more than offset the rise in revenues. In a lower-price environment, the imperative to cut cost and create efficiency is compelling and urgent.
For more information on the agreement and new Houston office, visit http://tcgconsulting.net/houston/.
About TCG
TCG Consulting is an independent strategic advisory firm delivering consulting, sourcing, and program management services to leading global organizations across corporate travel, meetings, payment and expense management functions. TCG helps companies, governments and non-profits optimize and integrate their programs through organization design, cost control strategies, process improvements, sourcing, enhanced spend visibility and policy compliance, improved user experience and outsourced program management expertise. Working with finance, procurement, HR and travel leaders, TCG develops, implements and manages strategic roadmaps to drive both short and long term success. In its 20 year history, TCG has successfully delivered over 1,100 engagements across 126 countries on six continents, delivering an average ROI of 15:1 to clients across Manufacturing, Financial, Oil/Gas/Energy/Field Services, Pharma, CPG, Technology, and other industry verticals. Our global footprint includes global headquarters in Charlotte, NC, USA, plus regional offices and teams in Houston, Sao Paulo, London and Hong Kong, as well as a Global Business Services Center in Manila.
