HR Outsourcing & Offshoring – A Case Study

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HR Outsourcing Offshoring A Case Study

• Bernard ODriscoll
• Group HR Services Director

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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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• 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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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

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Project Eclipse
Headlines to Staff Feb 2006
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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
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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

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• 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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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

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Partnership Approach
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• 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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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
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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

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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

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• 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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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

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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

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• 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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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

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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

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HR Outsourcing Offshoring A Case Study

• Bernard ODriscoll
• Group HR Services Director