Global HR Service Center Insourcing - Case Studies

A large technology company requested ScottMadden to design and implement its global HR shared service center.

Margins were continuing to decrease on products
HR costs were escalating as service levels decreased
The company had increasing difficulty managing the human aspects of a global operation
Employees expressed that they did not know where to turn for particular services
The company had significant differences in benefits and services available to domestic and international employees based on work location
The company had a weak HRIS infrastructure

Assessed key attributes including geographies, customer needs, required service levels and designed a plan for placement and staged rollout of ESCs
Planned and implemented HR shared service centers in the United States, Singapore, Thailand, Malaysia, and Ireland
Selected staff, implemented technologies, built knowledge base, designed processes, designed facilities, marketed concept, and trained staff and HR professionals
Designed general operations, including interaction with HR, escalation of cases, required metrics, and future scope

Client successfully completed HR shared service center implementation on time and within budget, despite the delay in implementing a new, integrated HRIS system
Service levels as measured by internal surveys increased by more than 50 percent during the first six months
HR reduced initial costs by more than 30 percent and expects additional cost reductions as services are added to the center
Refocused appropriately skilled HR staff on the delivery of solutions to business problems and away from administrative activities

SM106