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HR Outsourcing & Offshoring – A Case Study

HR Outsourcing & Offshoring – A Case Study. Bernard O’Driscoll Group HR Services Director. We will cover…. Rationale for move from internal HRSS to HRO Choosing a strategic partner Retain or Migrate? Results to date Maturing the relationship.

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HR Outsourcing & Offshoring – A Case Study

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  1. HR Outsourcing & Offshoring – A Case Study Bernard O’Driscoll Group HR Services Director

  2. We will cover… • Rationale for move from internal HRSS to HRO • Choosing a strategic partner • Retain or Migrate? • Results to date • Maturing the relationship

  3. Rationale for move from internal HRSS to HRO • Choosing a strategic partner • Retain or Migrate? • Results to date • Maturing the relationship

  4. Some Lloyds TSB HR Background • Created HR Shared Services in 2000 • Now serving 80% of Lloyds TSB Group (50,000+ staff, all 4 Divisions) moving to 90+% • Many well-established outsourced HR relationships: Healthcare, Payroll, Training, EAP, Recruitment, etc. • Strong HR record in cost reduction, service improvements, innovation and risk management

  5. Project Eclipse Headlines to Staff Feb 2006

  6. By 2008… We will have fully matured to create: • Outstanding Business Partnering • Well implemented, Industry-leading HR Policies • Best possible effectiveness and efficiency from shared services delivery …Great HR

  7. Eclipse will… • Redefine Human Resources in Lloyds TSB • Create a strategic partner for HR service delivery – with options for the future • Add significant value to the bottom line

  8. Rationale for move from internal HRSS to HRO • Choosing a strategic partner • Retain or Migrate? • Results to date • Maturing the relationship

  9. Key Sites Active Sites Planned Xansa ‘fit’ with HR in LTSB • Xansa were already partnering Lloyds TSB Group. HR Services chose them because: • Complementary culture • Good experience in UK employment practices • Strong customer base • Matched us for pace and ambition of transformation • Continuing our HR journey, not a different direction

  10. Establish Operations • Create the Vision xansa • Build Service Capability • Set the Direction lloydstsb • Develop further options • Deliver the Service • Lead the Change • Manage the Service Partnership Approach…

  11. Rationale for move from internal HRSS to HRO • Choosing a strategic partner • Retain or Migrate? • Results to date • Maturing the relationship

  12. Scope… • HR MI Production (e.g Line Manager packs) • Staff Exit/Leaver Administration • Back Office support for HR systems and Data Management • HR Technology Programme Management • Training & Administration Helpline • Outbound References • Recruitment Administration …combined Bristol/Noida operations

  13. We retain… • HR Call Centre • HR Consultants (Recruitment, Performance Mgt) • Legal Advice & Risk Management Services • HR Account Management • HR Change & Technology (now mix of LTSB/Xansa) • HR Supplier Management • UK-essential administration

  14. Implementation Approach • July 2006 - Dec 2007 • Full Programme with Group Offshoring team support • HR-wide representation on Steering Group • Co-opted experts as required (IT, Operations, etc.) • Well defined HR workstreams for each line of service

  15. Rationale for move from internal HRSS to HRO • Choosing a strategic partner • Retain or Migrate? • Results to date • Maturing the relationship

  16. Our position today • Migration almost complete and hitting ALL service standards • ‘No noise’ from users through to ‘active praise’ • India-based operations seen as extension of in-house HR Services team • HR staff have been actively supported through transition • Service Partnership is healthy and maturing

  17. Critical Success Factors • Building HR conviction in a radical idea • Implementing alongside fast-paced business change • Creating deep understanding and trust across combined UK/India HR operations • Understanding best performance measures to use in new environment • Managing Transition and keeping day-to-day service running

  18. Rationale for move from internal HRSS to HRO • Choosing a strategic partner • Retain or Migrate? • Results to date • Maturing the relationship

  19. Bringing people with you is key • Affected staff come first, always • Seeing India is worth 1000 power point slides • Always plan for technology-related glitches – and then some • Active leadership throughout the project alongside good formal Communications • Build confidence in your partner by being honest with each other

  20. Managing the Service • Migration phase used to build steady state working relationships • Monthly Service Operations Board - UK/India • Strong alignment between UK managers and Noida counterparts - weekly Operational Review meetings • Issue resolution – the true test of working partnership • Now speak of ‘HR Services’ irrespective of location

  21. HR Outsourcing & Offshoring – A Case Study Bernard O’Driscoll Group HR Services Director

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