nbn co: outsourced human resources

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  • 7/30/2019 NBN Co: Outsourced Human Resources

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    Outsourced HR helps

    NBN Co grow by a

    factor of 20To start building Australias

    National Broadband Network,

    executives at NBN Co needed to

    build a skilled workforce. Shortly

    after the formation of the company

    in August 2009, there were

    approximately 50 employees and

    the company was ready to put a

    structured Human Resources (HR)

    organisation in place. In only 12

    weeks, Accenture created an

    outsourced HR service that helped

    NBN Co to recruit at a rate of 80

    staff per month and manage payroll

    for all NBN Co personnel. By

    October 2010, Accenture had

    created an integrated outsourced

    HR capability to support all NBN Co

    staff and provide managers with

    performance assessment and

    reporting tools. By deliveringvirtually all HR functions as a

    service, Accenture is helping

    NBN Co focus on the core of the

    business building the new

    network. By staffing finance,

    procurement and project

    management requirements on time,

    NBN Co is operationally on target

    as the competitive landscape is

    causing delays.

    Business situation

    In January 2010, the company tasked

    with building Australias National

    Broadband Network, NBN Co,

    employed fewer than 50 staff. Before

    construction pilots could start in

    October, the company needed the

    ability to manage complex finance,

    procurement and project management

    activities. To do this, executives

    initially estimated they would need a

    core workforce of 1,000 to 3,000

    employees. However, expanding the

    company by a factor of 20 presented

    NBN Co with two complex HR

    challenges:

    The company would have to recruit

    at a rate of 60 to 80 staff per month

    to meet the targets. NBN Co

    however did not have anorganisation in place to handle

    such a significant hiring initiative;

    and it would take several months to

    create a traditional HR

    organisation. Time was of the

    essence, and the first finance and

    procurement employees needed to

    be hired within a few weeks.

    As soon as new recruits were

    hired, the company needed the

    principal components of an HR

    organisation in place, including: a

    payroll system, a records

    management system, HR policies

    and governance framework, and

    employee performance tracking

    and reporting.

    NBN Co needed to build an HR

    function, but also wanted to retain an

    exceptional level of flexibility within the

    function. This meant executives

    wanted the ability to expand rapidly in

    the future, pending business

    conditions, without over-investing in

    HR capabilities at the start.

    NBN Co turned to Accenture for help.

    As a recognised leader in outsourced

    HR services, Accenture was in aposition to provide NBN Co with the

    critical capabilities quickly.

  • 7/30/2019 NBN Co: Outsourced Human Resources

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    Copyright 2012 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

    This case study is one of a series of seven that tell how Accenture helped build key capabilities for NBN Co.

    How Accenture helped

    Working together, NBN Co and

    Accenture developed a strategy for the

    HR organisation and support systems:

    NBN Co would outsource recruitment

    and payroll for new hires and existing

    employees to Accenture. This in turn

    would give NBN Co the ability to start

    recruiting immediately and the

    outsource model would provide the

    organisational flexibility required

    by NBN Co in the early stages of

    operations.

    In only 12 weeks, an Accenture

    Business Process Outsourcing team

    designed, built and tested a hosted

    web-based recruitment platform

    solution to manage an end-to-end

    recruitment service for NBN Co. This

    service included creating job portals,

    receiving job applications, scheduling

    interviews, screening applicants and

    managing contracts. During the same

    twelve-week period, Accenture

    developed an outsourced payroll

    service which facilitated the payment

    of salaries to NBN Co employees. The

    entire HR system was integrated with

    the companys finance and

    procurement applications a few

    months later, helping to improve

    company administration and

    minimising data- entry duplication.

    At the same time, Accenture worked

    closely with NBN Co to define the

    optimum balance between retaining

    select HR capabilities in-house and

    outsourcing the rest. Outsourcing HR

    capabilities meant they could be

    established quicker and in some cases

    more efficiently, since the company did

    not have to invest in permanent HR

    resources. Yet NBN Co wanted to

    make sure they retained close control

    over some HR activities, such asstrategy, policy and governance.

    In the end, NBN Co decided to

    outsource to Accenture all HR

    activities that involved high-volume

    transactions, such as administration,

    records keeping and enquiries

    management, and only retain strategic

    policy-setting HR activities.

    Between May and October 2010,

    Accenture implemented 12 HR

    systems leveraging the Accenture

    Global Delivery Network strategically

    located around the world.

    These included:

    an HR portal that provides

    employees with access to policies

    a recruitment and onboarding

    system

    a performance and rewards

    system

    a records management system a learning management system

    a reporting system for NBN Co

    senior level executives

    a payroll system with integrated

    employee/manager self service

    an employee contact centre with

    help-desk tool

    These systems provide NBN Co with

    an integrated HR support service,

    combining reward, performance and

    talent management procedures with a

    dedicated, knowledgeable contactcentre. NBN Cos investment is based

    on a fixed rate for each service, along

    with an additional incremental charge

    based on the number of employees

    recruited and supported.

    High performance delivered

    With Accentures help, NBN Co grew

    their workforce from less than 50

    employees in January 2010 to nearly

    1,000 employees in spring 2011 and

    growing.

    Speed to deployment

    By introducing an outsourced

    recruiting service managed by

    Accenture in only three months,

    NBN Co could quickly ramp up its core

    finance, procurement and project

    management functions. This allowed

    the company to focus on building thenetwork, rather than building internal

    capabilities, and begin network

    construction activities on schedule at

    the beginning of October 2010.

    Business efficiency

    Because HR services are supplied on

    a pay-per-user model, the costs for

    these services are predictable and

    transparent. Executives at NBN Co

    understand their monthly HR costs

    because they have the information at

    their fingertips, and can easily

    determine the proportion of costs

    related to technology, processing

    and staffing.

    Contact

    To find out more about

    Accenture capabilities, contact:

    [email protected]

    or speak with your Accenture

    representative.