Accenture delivers a workforce optimization model for the client to define an optimal allocation between In-house and contract work. The model has been shown to reduce cost while maintaining customer satisfaction, with savings of over $ 1.0 million.
Having the right data about your workforce is key to success in HR operations.
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The client has relied on an external (contractual) workforce to augment internal labor. As a result, payments to third parties have formed a significant portion of total labor costs. The client sought Accenture’s help in understanding if the workforce ratio (in-house versus contractors) could be optimized to reduce cost without undermining customer satisfaction and labor productivity.
Accenture Analytics took a two-step approach:
Accenture began by understanding the current state by workforce, volume, type of work and region. The project team defined and analyzed productivity and customer satisfaction data to identify effective workforces in regions and for various types of work.
Application of optimization techniques—The project team used innovative techniques to arrive at an optimal allocation of work between in-house labor and contractors. Furthermore, Accenture developed a Workforce Optimization Tool for the client to enable periodic review of the optimal mix.
Accenture provided critical insights into cost, productivity and customer satisfaction by region, type of work and workforce. Accenture also recommended an optimal mix of in-house and contract labor for one of the client’s leading markets. This mix has the potential to bring down the cost by $350,000 in the initial project while maintaining customer satisfaction and productivity.
Across all of the client’s regions in North America, the potential workforce savings are estimated to reach $3 million.