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European subsidiary of a large auto manufacturer achieves high performance by outsourcing its HR function to Accenture.
A seven-year HR BPO contract with Accenture helps the European subsidiary of a large automotive manufacturer realize HR operational excellence—a key factor for a high performance business in the automotive industry.
This subsidiary is responsible for the manufacturing, distribution, marketing and sales of products in the European market. It employs approximately 14,000 people across its operations. As one of the most productive vehicle manufacturers in Europe, the company produced a total of 576,632 vehicles in its Spanish and British plants, and sold more than 570,000 vehicles across 40 markets in Western and Eastern Europe and Russia in 2006. With a vision to offer the very finest products, the company considers itself an industry-leading automotive manufacturer—evolving on a global scale.
The Accenture High Performance Workforce Study 2006 found that workforce performance and talent are of strategic importance to companies looking to achieve and sustain high performance. More specifically, Accenture High Performance Business research into the characteristics of high-performance businesses in the automotive industry confirmed that developing and retaining a strong talent base is crucial for an organization striving to achieve high performance.
Guided by a vision of enriching people’s lives, this automotive manufacturer seeks to create value through its provision of products and services, and build relationships of trust with its diverse stakeholders, including—and especially—its employees. The European division of this global vehicle manufacturer looked to outsourcing to improve the way it develops, manages and delivers human resources (HR) services to its employees.
Driving business value through outsourcing requires industrialization principles that enable rigorous, repeatable and high-quality methods and technologies to be applied to work sourced anywhere in the world in a blend of onshore, offshore and nearshore models. At the heart of these industrialized principles is operational excellence—a key factor for a high-performance business in the automotive industry.
Under a seven-year business process outsourcing contract signed in 2006, Accenture provides recruitment, performance and progression, learning, employee life cycle management, payroll administration and information management services to the company’s 14,000 employees in France, Spain and the United Kingdom—as well as all the other 20 European countries in which it operates.
These services are delivered in English, French and Spanish from the Accenture Delivery Centers in the Czech Republic, India, Spain and the United Kingdom. These centers are key components of the Accenture Global Delivery Network, the largest and most diversified group of technology, business process and outsourcing professionals in the world.
This outsourcing model allowed the manufacturer to harness the power of industrialization and globalization through Accenture’s proven, standard framework for building and delivering reliable solutions and services.
Over the last few years, Accenture has helped the European subsidiary of this large automotive manufacturer to achieve the following:
A reduction in HR cost, for services in scope, in excess of 30 percent.
The implementation of an integrated HR system.
The design and implementation of standardized HR processes across more than 20 countries, especially for talent life cycle management.
An improvement in the scalability of HR services to meet peak demands.
The scalability offered by the new HR service delivery model was demonstrated in early 2008 when the manufacturer had to increase its operations from 16 hours to 24 hours per day by adding a completely new shift to its production line at one of its plants. Driven by a huge sales demand for the company’s latest vehicle model, the manufacturer needed to recruit and train 800 new employees within the country—a volume traditionally managed over the course of a year. With Accenture’s help, the manufacturer and its HR department was able to successfully implement a recruitment campaign whereby it hired and trained the required number of people in just one month.
By choosing to outsource its HR services, the European subsidiary of this large automotive manufacturer is optimizing the performance of its workforce and improving its operational excellence—thus realizing its intention of becoming a high-performance business.
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