WFM software enables management to realize significant cost reduction. This is achieved by efficient use of agents, since salaries account for 70% or more of the cost of running a call center.
Jill Goldstein, senior manager of HR Outsourcing at Accenture pointed out the following benefits:
Reduced HR operating costs: Moving to a global delivery model and implementing proven, effective processes can offer significant savings in the cost of delivering HR services. Accenture HR BPO Services have helped organizations reduce HR operating expenses by 20 to 30 percent though the standardization, centralization and automation of key services. Accenture has embedded industry leading practices into documented processes, integrating people, process and technology within our industrialized model. We drive reduced
HR operating costs by leveraging our global delivery capability, utilizing a shared services model, and reducing transaction costs through increased self-service.
Improved workforce costs: Beyond reducing HR operating costs, Accenture has also achieved reductions of 4 to 6 percent in overall workforce costs. Accenture helps organizations minimize non-value added work, trim non-productive time, reduce absenteeism and cut the cost of poor quality. Accenture enables the organization to achieve tangible results that include better selection of top performers, improved retention of critical performers and workforces, better identification of poor performers, reskilling and deployment of displaced employees, and accelerated time to competency. Using proven, effective processes also frees up line managers’ and employees’ time, resulting in significant increases in productivity.
Improved workforce results:Beyond reducing costs, Accenture HR BPO Services also help the organization achieve improved workforce results, measured by revenue increases of 1 to 2 percent.
Accenture creates competitive advantage by forecasting and fulfilling talent requirements and aligning talent plans, workforce capabilities and employee performance with business strategy. Targeted learning campaigns are another strategic tool in improving employee performance.
Drawing on a vast portfolio of assets, campaigns tailor the learning experience based on the audience and key business objectives, measuring results in terms that are meaningful to the client’s business. Results achieved for clients include measurable growth in sales and revenue, faster time to proficiency, and reduced time spent on training. Accenture mines workforce and benchmarking data for the insight required to drive talent decisions. Talent results are gauged through Return on Investment (ROI) and financial measures.
Adding to the above, Vij articulated, “There can be multiple benefits that can be achieved. Team of core specialized people handling the activities with proven expertise in the market. The burden to procure WFM tools, its administration and maintenance rest with a third party. Training and development of resources on the tool is taken care by a specialized third party. Sharing of best practices within organizations though the two buyers would not interact with each other.”
The current market scenario is quite favorable towards WFM Outsourcing. Top players who had entered the market initially are expanding their business swiftly.
“Geographic scope for workforce management process outsourcing is on the rise, though process scope may be reduced; especially with mulch-national organizations. Such organizations likely to partner with vendors that has proven track record and global capability. Without a doubt, customers will continue to focus on cost savings but they also be looking for innovation and guidance from their partners, said Krishna Baidya, Industry Manager, FROST & SULLIVAN.
Vij notices that as organizations work towards strengthening their capabilities and will offer the same as a solution to a different organization.
As per Goldstein,”The next generation of HR outsourcing will be about quality, efficiency and effectiveness through the use of an innovative gain sharing mechanisms between client and provider. Most organizations today are beginning to link learning to strategy, how they make more productive a multi-generational workforce and how they source and deliver effective learning and collaboration."
Recommendations for vendors:
Ravi Vij, Director, Quality and WFM/MIS, Tech Mahindra suggests that service providers should not try to pitch in for the end to end solution, if they lack confidence or do not have a proven expertise in any specific sub-function of WFM. One should only pitch in for the business in which they have high capabilities and proven records. Vendors should also look at understanding the business before they start providing solution to the buyer as it will definitely help them plan their action plan.
Recommendations for buyers:
Prior to finalizing a vendor buyers should do a complete market research. The market research should entail getting feedback from vendors clients. Buyers should be open to exploring the feasibility of outsourcing each sub-function to different vendors on the basis of service providers proven expertise.
In the end, one buyers as well as service providers need to keep in knowledge, that perfect alignment between people, process and technology is an essential critical success factor.