IBM s people approach in outsourcing
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- Charlene Bradford
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1 IBM Business Consulting Services Human Capital Management IBM s people approach in outsourcing Partnering to find the right HR solution
2 Introduction The response of many organizations to globalization, complexity and intensified competition has resulted in record levels of growth in outsourcing. Over the past decade, outsourcing has been used increasingly as a powerful tool to sharpen competitiveness and enhance efficiency. On demand enterprises need flexible people solutions. Businesses have to be able to respond to changing needs in their market, and changing requirements from their customers. That means moving away from a traditional fixed cost base for people and into a more variable cost structure. IBM has a long history of leadership in providing end-to-end solutions with virtually unmatched business and technical expertise. We understand that every element of an outsourcing alliance is important from the technical solution through final contract delivery. But it is people who make business and technical solutions work. People are the most valuable resource in our on demand environment. Over the past 15 years, IBM s Human Resources (HR) team has continually evolved processes to develop outstanding HR people solutions for our clients. IBM has extensive people outsourcing experience through our numerous information technology (IT) and business transformation outsourcing engagements. We have a wealth of world-class knowledge and experience and it s all there for you. Our job is to create a people solution that provides your business with the skills you need when you need them. It s what we call the on demand resource model. We want to work with you to create that, or to develop that further with you.
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4 Working in partnership to build the solution When you work with IBM to develop an outsourcing solution, you get the benefit of working with experienced specialists. We know our subject but we also understand the importance of listening. That s why we begin with a structured approach to understanding the options available to you and agreeing a way forward. Experience shows that the best people solutions, created to suit individual business issues, are developed in close cooperation with clients. No two activities are the same but our solutions will always address the situation in your company, in our company, and in partners and other sources of skills, resources or expertise that we involve along the way. There are four key parts to building a people solution. Each part contains multiple components. Bringing together our joint wealth of experience and innovation A joint HR project HR consultancy offerings Drive flexibility and employability for employees Commercial solutions Design commercial business structures and partnerships Transition adaptations Align people solutions to the business transformation plan Resource management options Implement tools for resource flexibility
5 In partnership, we will develop a tailored people solution to achieve your objectives HR consultancy offerings The first step towards managing change successfully is to create an awareness of the issues involved. We work with you to prepare your organization for change and the consequences of this change. We work on issues such as long-term employability, job security, skill development and optimizing organization design. IBM CareerNavigator, our newest offering, allows us to take a unique position in addressing the situation where employees are affected by an outsourcing. IBM CareerNavigator offers a different approach to employee support and development that blends training with access to non-traditional Web-based job and career planning aids. Commercial solutions We work with clients to create the legal and commercial framework around the resource solution. We may find ourselves creating dedicated legal entities such as IBM subsidiaries. Or we may join forces with other partners for part of the solution and create legal entities such as a joint venture. Additionally, we may form a partnership with a thirdparty organization that can offer longer term employment opportunities for your people in specialist areas. Transition adaptations Timing is key in both the short-term transition of people from one company to another and in the long-term transformation of the resources to deliver the business goals. It is important that changes to HR and technical issues are timed to complement and support one another, so that the overall outsourcing project proceeds smoothly. We work with you to define a project which supports your business strategies, outsourcing objectives and resource priorities. Resource management options After the transformation process is complete, the next step is to work jointly to develop a resource model to achieve the kind of flexible resources that clients need in the long term. This involves looking at opportunities for employees through skill development, redeployment, replacement of subcontractors and long-term secondment, but also assesses the probability of voluntary attrition and retirements.
6 Unparalleled expertise and experience Once the overall direction of the people solution is agreed, we develop a detailed structure to ensure success in the people project. Over the years we have worked with hundreds of clients on IT and business transformation outsourcing projects, and in our experience we see six success factors within the HR field that will need to be covered. They are: Resource dynamics Culture Industrial relations Terms and conditions HR programs A top-class HR team. IBM has real experience of delivering long-term sustainable people solutions Transformation approach Resource dynamics Manage changes in the resource pool Culture Build on cultural success factors Key to success: address all aspects of the people solution Industrial relations Terms and conditions Work with employee representatives Optimize terms of employment HR programs Implement top-class HR programs HR team Assign a top-class HR team
7 Dedication to every client s success We believe in the importance of continuous learning for improvement. We begin by listening and acting on what we hear and that s how we carry on. We hold executive meetings to evaluate our decisions, actions and results. We analyze the outcome of the transition by obtaining regular feedback from your employees, and follow up with surveys to learn how we can enhance our best practices. When we believe it s necessary, we modify our process ensuring continual excellence. As one of the industry s premier integrators of business and technical solutions, IBM can readily pull together the comprehensive portfolio of technology, process expertise, skills and experiences that the marketplace demands. This approach to the people solution is delivering value to clients all over the world. Our experience of delivering a tailored solution allows us to make a vital difference to every outsourcing contract we sign. For more information To learn more about IBM Business Consulting Services, contact your IBM sales representative, or visit: ibm.com/bcs Resource dynamics The new solution that we build will often call for adjustment in resourcing levels. In any situation, these resource dynamics will create a need for well managed HR activities within a joint project. We will develop a whole range of activities to manage the resource dynamics to meet the business need these will be activities such as recruitment, redeployment and organizational design. Culture Any significant outsourcing project is ultimately about achieving a cultural shift in an organization. We have a detailed and extensive toolkit to help us identify the cultural issues and take business-oriented actions to bridge them. Industrial relations It s important to establish a good relationship with the client s employees and their elected representatives. With our global experience, we know that situations vary enormously, depending on local conditions and regulatory issues. But at all times we aim to minimize the risk of business disruption. Terms and conditions When the nature of a job or role changes, the terms related to the employment may well change too. Having the right terms of employment is a key element of employability and long-term competitiveness. We work with clients to ensure that the outsourcing service in support of their business is not impacted by any change in employment conditions to the people delivering the service. HR programs Going forward, a transformed business needs a review of its HR programs. We help clients to reassess and redevelop their HR practices in areas like grading, performance management/appraisals and skill development as they look to develop and retain the employees who will serve them in the future. A top-class HR team Together we build a top-class team of HR professionals from both organizations to work together for mutual success.
8 IBM United Kingdom Limited 76 Upper Ground South Bank London SE1 9PZ The IBM home page can be found on the Internet at ibm.com IBM, the IBM logo and the On Demand Business logo are trademarks of International Business Machines Corporation in the United States, other countries, or both. Other company, product and service names may be trademarks or service marks of others. References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. Copying or downloading the images contained in this document is expressly prohibited without the written consent of IBM. This publication is for general guidance only. Copyright IBM Corporation 2006 All Rights Reserved. FEUS
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