By Campbell Fisher

To gain a greater understanding of how organisations can effectively build an integrated shared services solution and a centre of excellence for HR, WR and WHS FCB Groups.

In Australia, workplace relations remain firmly on the HRM agenda this year as the area continues to be a challenge, as we move to a harmonised national system of regulations.

While many organisations have already transformed their transactional HR processes to increase productivity and scale, knowledge-based HR advisory services remain the next step to consider.

One of the key benefits of a central model for HR advisory services case management is the ability to generate on going reporting and metrics on systemic employment issues. This enables businesses to make smarter decisions by accurately reporting on issues raised, for example, service standards, quality and cost on a per-transaction-per-head or per-business unit basis.

Undoubtedly, there’s a role for the shared services model in the HR and WHS advisory space. Indeed, in the last decade there have been a number of significant legislative changes that now make it more logical to apply a shared services solution. These include the Fair Work Act 2009; 122 Modern Awards, 10 National Employment Standards; Independent Contractors Act 2006; Work Health and Safety harmonisation of legislation through 2012 to 2013 and the Paid Parental Leave Act 2010. This progressive move to national or state harmonised regulatory frameworks provides an organisation with the ability to centralise workplace relations’ advisory functions to gain greater value and efficiencies.

Furthermore, the deep cuts inflicted by the GFC have an on going impact on an organisation’s HR function. While transactional HR services may have been partially or fully automated eliminating the need for HR teams to handle this workload, HR resources are being stretched to manage operational and compliance issues. This is diluting the HR department’s ability to deliver strategic initiatives, which support competitive advantage and assist the organisation to achieve their commercial objectives.

HR Directors are validly questioning their HR structure, design and delivery priorities in light of stretched resources. Core competencies sought for HR teams focus on employment branding, talent attraction, talent mapping, culture, leadership development and coaching, as well as talent retention.
With this primary focus, many organisations are seeking answers to how they can deliver HR, ER and WHS advisory in new effective and efficient delivery mechanisms.

Yet just think about the breadth of service offering that the HR function delivers. This includes providing expert advice and consultancy on workplace relations matters; developing and managing policies and programs for labour relations, employment, induction and training. There’s also the need for experienced negotiation skills, and the ability to arrange representation as appropriate at industrial tribunals and hearings. On a day-to-day basis, there’s a need to monitor employment relations developments, conditions of employment, welfare, security, safety and training of employees. And at all times, there’s a need to ensure workplace relations compliance through regular auditing and procedural training of employees.

While there is undoubtedly more red tape and compliance paperwork, many businesses may not be able to support a business case for additional resources to manage all these issues. At the same time, attracting, retaining and providing meaningful career paths for specialist workplace relations experts to resource in-house teams often proves difficult for large organisations.

However, with the development of new technologies that ease the delivery of a shared service or an alliance model as well as the national/harmonised regulatory frameworks, an on going partnering relationship with an external workplace relations specialist really starts to make sense. Through this partnership organisations are better able to maximise the value their HR function provides the business, proactively manage workplace issues thereby reducing their cost to the business and improve service quality through better customer alignment.

For HR Directors though, it’s not just about delivering cost reduction – additional drivers include access to specialist services and expertise, leveraging IP, implementing knowledge management systems, managing risk and empowering managers through new effective accessible delivery models.

Given the maturity and high success rates achieved from transactional HR shared services, it’s no surprise to see forward-thinking HR Directors are considering incorporating expert and advisory services within the shared services model. The next step will be considering if they should also incorporate strategic advisory services within this model or form alliance relationships with external workplace relations specialists to provide consistent, quality advice cost effectively.

Contact: Campbell Fisher cjf@fcbgroup.com.au

• Listed business process outsourcing (BPO) firm Paxys Inc. has announced plans to sell off for a significant premium all of its business in Australia, representing about two-thirds of the company’s assets. In a disclosure on Monday, Paxys said its wholly owned subsidiary Paxys NV had signed an agreement with Smart Group Investments Pty Ltd for the sale of Paxys Australia for 84.9 million Australian dollars. “The sale includes all of the subsidiaries of Paxys Australia, consisting of Smart Salary Pty Ltd, Smart Fleet Management, SeQoya Pty Ltd, PBI Benefit Solutions, and Australian Vehicle Consultants,” the listed firm said in a disclosure. As of end 2011, the consolidated net book value of Paxys Australia was at 34 million Australian dollars.
• Talent2, IBM & Fuji Xerox recognised as top global providers of training outsourcing solutions three members of the Australian BPO Association (ABPOA) have been named in Training Industry.com’s Top 20 Training Outsourcing Companies list for 2012. TrainingIndustry.com, a global training industry portal for the learning and development market, continuously reviews companies that provide training business process outsourcing (BPO) services and conducts an annual assessment to determine suppliers’ experience and capabilities. The Top 20 list recognises the leading training outsourcing companies for their high quality services and comprehensive capabilities. All have demonstrated expertise and experience in managing major BPO engagements as well as creating a significant impact on the industry.

  Click here to view the Top 20 Training Outsourcing Companies

• Datacom managed Small Business support line that provides expert advice to Australia’s small business sector is about to reach a milestone of 50,000 calls. The support line is a free service that provides one stop shop assistance on a range of issues to small business. The small business support line can be contacted on 1800 777 275

The Employer Branding Conference, an annual event where extraordinary employer and employee brand experts, HR and career professionals come together for learning, peer interaction, and inspirational seminars, begins at 11:00 a.m. on May 10th and features Jenny DeVaughn, Manager Social Media at Waste Management, Dan Black, Americas Director Campus Recruiting at Ernst & Young, Brian Rolfes, Partner, Director of Global Recruiting at McKinsey & Co. and Victoria Berger-Ross, Senior Vice President, Global Human Resources at Tiffany & Co., among others. Presentation topics include best practices for social media, employer branding, and employee engagement.

For more information about the CEO Panel visit: http://employerbrandingconference.com/speakers

This month in the IBM® Social Business Xchange information series IBM are offering two related resources, a White Paper on Measuring Social Software,
and a video case study featuring the AFL: Become a Social Business

By Matthew Mower, sourcingfocus.com

Summary

It is apparent that emerging technologies and economic activity continue to change the face of BPO. Business process outsourcing manages to drive a range of efficiencies in a number of different types of organisations. A wide variety of organisations will continue to benefit from BPO in these austere times, which can also support a collaborative approach to contract negotiations.

Business Process Outsourcing (BPO) has traditionally been used to outsource the processes peripheral to the key business strategy, in order to use time, money and resources more effectively. Some of the most common outsourcing activities include human resource management, financial services and accounting, information technology and legal process management.

An austere economic climate has seen the BPO contract count climb to an all-time high, as organisations look to cut costs in an effort to survive. This feature will be looking at three growing trends in BPO – HRO in SMEs, integrated BPO / ITO packages and the use of BPO in financial services.

HRO and SMEs

The rise in outsourcing contracts bought by SMEs has recently been dramatic. Particularly fragile to economic downturn, SMEs have looked to use their resources more effectively in an effort to survive. Human resources and payroll tasks can be arduous and time consuming, often requiring dedicated departments and infrastructure. Outsourcing HR has proved to be an effective way for SMEs to save time and money.

EISER was formerly wholly owned by Fortis Investments, which was a subsidiary of BNP Paribas Investment Partners Group. The Partners in EISER completed a management buy-out to become a single, independent entity. Prior to this, all of EISER’s back office services, including HR, were supplied by Fortis. The challenge was to transfer all their employees out of Fortis and become fully self-sufficient in HR with no drop in service quality.

Plus HR’s dedicated HR Administrator handles all day-to-day HR tasks, including issuing employment contracts and employees and maintaining HR data. Employees are able to book holidays online via self-service, and managers can view employee reports for their teams. Payroll is entirely outsourced, freeing up internal finance to concentrate on value added tasks. With plusHR, EISER now have a dedicated, full-service HR and payroll function at a fraction of the cost of hiring their own in-house team.

Integrated ITO services

For larger businesses that operate internationally, ITO integration services can provide clarity and ease of use across all platforms. Avis Europe plc is a leading car rental company in Europe, Africa, the Middle East and Asia operating the globally recognised Avis and Budget brands.

Avis Europe identified a need to provide greater clarity and improved efficiency in order to maintain its reputation as a customer-focused business. With locations across Europe generating some 15 million documents per year, it was becoming increasingly difficult and time consuming for staff to store, retrieve and process customer documentation. Although the company had separate online imaging systems within each country, these were not integrated and did not allow for cross-border working.

After a competitive tender process, Avis Europe selected EDM to provide high volume processing and storage services. As part of its consultancy service, EDM set up EDM Online, a secure information management system. This system allows Avis’ shared service centre to access essential customer information from any branch – all at the click of a button.

Around seven million documents a year, out of a total of 15 million, are now shipped to EDM’s Manchester mailroom in the UK for capture and storage on EDM Online. The remaining documents are added to the system through dedicated on-site scan stations, which are located at individual Avis Europe locations and securely connected to EDM Online via the web.

BPO in Financial Services

Within financial services, bureaucratic and administrative workloads can often become excessive. Nationwide’s merger with Portman generated an increase in the volume and variety of customer records, which highlighted the need for a centralised, audited and efficient document management service for the business and its customers. The solution needed to bring together information in multiple formats and locations, including a microfiche/film archive in excess of 40 million frames, 68,000 boxes of customer records and 25 million scanned images.

EDM designed and implemented a purpose-built document archive and retrieval solution through its secure Scan-on-Demand service. EDM’s transition team catalogued all customer records and managed their secure transfer to a dedicated facility purpose-built for Nationwide. Now, as records are requested, EDM scans and uploads documents to its hosted web service, EDM Online, to give Nationwide staff secure and instant access to archived customer data from any networked PC across the organisation. The complete service assures seamless document security.

Source: Sourcing Focus

By Facilitating Technology Enablement and Global End-to-End Process Ownership, A GBS Operating Model Helps Companies Drive to World-Class Performance

Companies can generate millions in annual savings and improve both efficiency and effectiveness by achieving world-class performance in finance, IT, HR, and procurement, and a key strategy is the implementation of an integrated Global Business Services (GBS) operating model, according to new Book of Numbers™ research from The Hackett Group, Inc. (NASDAQ: HCKT).

The Hackett Group’s new research found that companies with GBS operations, which integrate and consolidate multiple business functions, can drive real cost reduction, and are a key to achieving world-class performance, in part by facilitating both greater technology enablement and global end-to-end process ownership. The Hackett Group’s research found that companies that achieve world-class performance across business operations achieve cost reductions of 29 percent. For a typical Global 1000 company with $28.8 billion in revenue, these reductions amount to $314 million in annual savings. At the same time, top-performing GBS organizations deliver dramatically improved effectiveness, including a nearly 30 percent improvement in quality of service, nearly 6x the improvement seen at typical companies.

The days of significant transaction processing across most of the back office are quickly coming to a close. For example, The Hackett Group’s research shows that over 70 percent of all corporate finance transactions are already handled by a GBS. Most companies are now taking an integrated approach, and the trend away from stand-alone shared services operations and towards multi-function GBS operations is accelerating rapidly. According to The Hackett Group’s research nearly 75 percent of GBS organizations now integrate processes from across more than one business function, an increase of nearly 50 percent over the past two years. Finance continues to be the dominant anchor function of GBS organizations, followed by IT, HR, customer services, and procurement.

The Hackett Group’s research also includes an analysis of the best shared services center locations across the globe that companies can turn to for low-cost labor as part of their GBS optimization and business process outsourcing efforts. While India and China remain the leading countries to turn to for high-volume transactional work, the research recommends looking at other countries for skill leverage, and also for work where cultural and language skills may take precedence. The research identified several countries as promising next-generation sourcing locations, including Chile, Columbia, South Africa, Indonesia, Sri Lanka, and Bulgaria.

The Hackett Group’s Book of Numbers volume, entitled “Global Business Services: The Revolution Continues,” provides a detailed analysis of the challenges companies face as they shift from separate functional departments to an integrated multi-functional GBS organization, and critical insights on how to overcome these challenges. The shift requires dramatic changes in the service delivery model and mindset and culture of companies. In addition, the volume describes in detail the best practices used by companies that achieve peak GBS performance. The new Book of Numbers volume contains more than 60 pages of insights and over 30 charts and tables detailing metrics of both typical GBS organizations and top performers.

“Our research clearly shows that operating models with stand-alone functions for IT, finance, and other areas are giving way to an integrated service-oriented approach,” said The Hackett Group’s GBS Global Practice Leader Honorio J. Padrón. “Even before the recession drove a ‘whatever it takes’ attitude to cost-cutting, savvy companies were beginning to use Global Business Services to transform the delivery of business services based on processes and services rather than functions. Now the trend toward GBS is accelerating, and the benefits are becoming even more clear.

“The opportunity for companies to reduce costs and also improve effectiveness and business alignment by shifting to a GBS approach are impossible to ignore,” said Mr. Padrón. “Instead of taking an inward-focused cost center mentality, top GBS organizations are operated as a ‘business within a business.’ They act and think like an outward-looking customer-centered service provider. The result is that they drive greater value and play a more strategic role within their companies.”

According to The Hackett Group’s Chief Research Officer Michel Janssen, “What we’re seeing with GBS is a dramatic transformation of the corporate back office. But the change requires a real cultural shift, which can be quite challenging. The Hackett Group’s research shows that companies need to truly standardize and consolidate activities across multiple functions in order to achieve the necessary economies of scale. Decision-making authority has to shift, to enable cross-functional process design and a standard services catalogue across a company. World-class companies have shown that training is required to help staff build strong skill sets in areas like business relationship management and demand management.”

Additionally Mr. Janssen says, “Research also demonstrates that companies must maintain a focus on continuous service and process improvement, as well as give consideration to how best to globalize the service delivery model to leverage offshore resources and optimize costs and skills.”

Demand for multi-skilled IT workers knowledgeable in business and big-data specialists, huge spending on cloud and a new era of outsourcing will characterise the year ahead, says market analyst IDC. IDC Australia chief of research Matt Oostveen said in-demand IT workers would need business skills and would increasingly compete with an international pool of highly trained workers operating in cheaper labour markets.

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Talent2 International Limited (ASX: TWO) announced today that it had been selected by the Queensland Government, through a competitive tender, as the ICT Contractor Resource Manager. The three-year contract will see Talent2 take responsibility for the implementation and management of a Managed Service Program (MSP) across all 13 Queensland Government Agencies. This program will cover the procurement and performance management of all ICT contractors and suppliers that provide services to the Queensland Government. This program will improve the economy, effectiveness and efficiency of ICT contractor resource management for the Queensland Government.

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SonicWALL, Inc., the leading provider of intelligent network security and data protection solutions, today announced it has expanded its suite of firewall security services with the addition of Kaspersky Anti-Virus to its Enforced Client Anti-Virus and Anti-Spyware solution. SonicWALL® Firewalls ensure easy deployment, provisioning and enforcement of the client on endpoint devices through a unique policy-driven engine. SonicWALL Next-Generation and Unified Threat Management firewalls already provide gateway anti-virus through SonicWALL’s proprietary reassembly-free deep packet inspection anti-malware solution, protecting the perimeter, wireless and VPNs. But viruses can still enter the network through other entry points, including laptops, thumb drives or other unprotected systems. While protection at multiple layers is the best defense against sophisticated modern threats, deploying, maintaining and enforcing the right security software on endpoint devices can strain IT resources and budgets.

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New Release of Unisys Secure Cloud Computing Solution Gives Clients Better, More Cost-Efficient Resource Management New dashboard capability gives administrators a single, integrated view to better manage their cloud resources and control costs. Release 2.1 includes a new dashboard capability that gives administrators a single, integrated view of all cloud resources: servers, networks, storage systems and more. They can use the dashboard to determine the operational status of specific resources and take necessary actions to respond to business changes in real time, deliver performance mandated by service-level agreements (SLAs) and increase infrastructure productivity.

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Nespresso revolutionises its Business Solutions after-sales services with Machine-to-Machine solution from Orange. Nespresso Business Solutions is enhancing its B2B coffee machine after-sales service maintenance with a customised machine-to-machine (M2M) solution from Orange Business Services. Nespresso has launched two revolutionary B2B machine models – Aguila and Zenius, the industry’s first connected tabletop coffee machines. These models use embedded SIM cards from Orange that enable the machines to communicate with the Nespresso Customer Relationship Centres. This two-way communication enables remote machine diagnostic and preventative maintenance visits can be scheduled as required.

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International Recruitment Company HARVEY NASH launches new career opportunities and outsourcing services in Sydney Australia. The company has already gained several years experience in the Australian market working for international clients from its existing world-wide network of 40 offices, including Hong Kong and Vietnam. The new office marks a significant investment in the Australian market, and reflects confidence in the strength of its economy as well as the increasing demand for highly skilled talent both locally and offshore.

The latest report findings from NelsonHall, a leading BPO analyst and advisory firm, measured the transfer of operational responsibility for all payroll services, from the client to a services provider, for contracts of 12 months or more.

The report estimates the competitive Asia Pacific payroll outsourcing market to be valued at $431 million. Specifically, emerging markets such as China and India will experience strong growth whilst consistent growth in Australia will continue.

Mary Sue Rogers, Global Managing Director of Talent 2 HR Managed Services said:

“We know from market research that outsourcing is now being considered as a strategic solution for many oganisations, rather than just a cost-cutting tactic in response to the GFC. We are seeing steady growth in the Payroll outsourcing market despite the sluggish economy, with an increasing number of organisations looking for multi-country and consolidated domestic payroll.

The leading players are reflected in the table below:

T2 snags top influencer

Mary Sue Rogers routinely appears on lists of the Top Consultants in the World. Ms. Rogers has worked in HR for over 25 years, in a variety of roles focused on transforming the role of HR in organisations through consulting and outsourcing. She has experience with a variety of industries including financial services, industrial and consumer packaged goods. T2 announced the appointment of Mary Sue Rogers as the new Global Managing Director of HR Managed Services. Mary Sue’s remit will be to lead Talent2’s Payroll, HR Advisory and Learning businesses

International Business Leaders Meet for Outsourcing Summit in China

Last week, a large number of international political and business leaders converged on Ma’anshan, China, for the fourth annual Global Outsourcing Summit. The conference focused on how outsourcing, including call center development, can help develop industries throughout the world, with a particular focus on China. Brazil, the Philippines and the United Arab Emirates have also all been developing vibrant BPO markets that are helping to create jobs and economic growth. Worldwide the business process outsourcing market expanded by 25 percent during the first quarter of this year, according to a report from the Everest Group.

Oracle to buy RightNow Technologies

IT giant Oracle will buy cloud-based CRM specialist RightNow Technologies to boost its customer service offering. RightNow customers in the region include Telecom NZ and Virgin Mobile, while the US-based company has around 1000 employees worldwide, including a branch in Australia. “Oracle is moving aggressively to offer customers a full range of cloud solutions including sales force automation, human resources, talent management, social networking, databases and Java as part of the Oracle Public Cloud,” said Oracle’s Thomas Kurian. “RightNow’s leading customer service cloud is a very important addition.”