A Perfect Fit
Improving the administration of HR tasks and modernizing efficiencies and technology was the motivating driver for LS&CO. to outsource. There was a great need for standardizing processes. Some of the tasks that were transferred include sourcing and screening of talent for "non-core" jobs, paperwork, on-boarding, new hire packs and first tier benefits issues.
Besides the obvious challenges surrounding an outsourcing initiative, in particular -- transitioning people out, Holmes points out that there needs to be a plan for transitioning people in as well. To tackle this, it held a "culture" day, in which the provider's people spent time on site learning not just about the business objectives of LS&CO., but also about the work environment and corporate philosophy.
A Global Operation
LS&CO's global presence can be divided into three geographic divisions: North America, Europe and Asia/Pacific. When deciding on a provider, Holmes says it wanted an organization with proven BPO experience and a "global footprint." This would allow for possible inclusion at international locations and allow LS&CO to tap into Accenture's experience in the global market. Holmes says that this provider could "complement their service delivery expertise with informed consulting expertise" if need be.
Holmes says it took about six months to get to the point of stability. So far they are "very happy" with the partnership. He says they hit cost targets and service levels, even exceeding expectations. Although LS&CO knew outsourcing would save money, it had not anticipated the side benefits of this. For example, the savings allowed LS&CO to invest in such things as human capital in other areas of the company, which in turn resulted in new and better strategies.
Looking back, Holmes would have preferred to have more overlap time during the transition. According to him, "clarifying objectives up front" and "communication" pave the way for the success of the relationship and are the two most important factors throughout implementation.