Outsourcing 2.0: from traditional HRO to SaaS model Elena Rybkina, Head of Marketing, R/CIS AmCham Annual HR Conference October 21, 2010. St. Petersburg
Outsourcing origins If we cannot make something better and cheaper that our competitors, there is no point doing it; we must hand the job to those who is able to achieve a predictably better result Henry Ford 1930
Expert opinion Most frequently outsourced functions 50 45 40 35 30 Payroll HR processes 25 Procurement 20 15 10 5 0 Logistics Document management Source: Deloitte, 2008
Outsourcing types Outsourcing is usually divided into: BPO (outsourcing of non-core business functions: HRO, FAO, etc.) Minimal involvement of the company s employees into the process Provider s accountability for the quality of service Possibility to use IT capabilities of the provider ITO (information technology enabled services, SaaS) No expenses incurred on the purchase of IT systems Reduction of costs related to software deployment and support Reduction of expenses on IT support and amortization of equipment
Traditional HR Outsourcing Documentation request Personal data Client s office Contact person HR documents Instructions and reports Provider Contact person HR specialists of the provider Service processes of the provider Software development and customization Legislation monitoring and analysis Technical and methodological support Ensuring security of IT infrastructure Regular audit of service delivery quality
SaaS model for HR administration SaaS Software as a service WEB Interface of HRM system Outsourcing provider Web Center Processing Center Storage Center Internet/System access 1C 8.2 Payroll and HR Management software System accessibility from any place in the world Service availability 24х7х365 Continuous technical support of the provider Minimal IT requirements to users workplaces
Complete outsourcing solution: Payroll and HRA Leverage a complete solution for the interconnected processes - payroll processing and HR administration: Key solution features: All payroll processing and HR administration operations are performed by very few people on the client side (even 1 employee) HR department costs are reduced through centralization of routine operations and automation of HR document creation.
Solution advantages Internal process optimization Accurate and timely payroll calculation independent of the human factor and automation of HR operations. No initial investment in software It is much cheaper to rent software than to buy and implement it. Quick deployment The solution is hosted and maintained by Intercomp. No setup is required on the client side. Scalability and performance The solution is scalable depending on the number and size of company offices. It also supports many simultaneous users. Secure data storage and transfer The system is accessed via secure connection. Daily backup reduces the risk of data loss.
Legal aspects of SaaS SaaS (Software as a Service) model full legislation compliance Special agreement with 1С (legal owner of the software) and Intercomp Global Services (service provider) Full compliance with 1С license policy Ownership of necessary number of licenses on all product lines and access rights
About Intercomp Global Services Intercomp Global Services is an international provider of business process outsourcing services, a leader in Russia and the CIS 16 years experience in BPO More than 500 clients, including Global Fortune 500 and major multinationals 700 000 pay slips processed per year in 32 counties Client pay slip count ranging from 1 employee to 14 000 employees 500+ employees globally Innovative proprietary technology in service delivery SAS70 certification
THANK YOU! Elena Rybkina Intercomp Global Services elena.rybkina@intercompglobal.com