January 5, 2012: Shell, the energy giant has announced their decision to outsource some of the HR functions to Accenture. The outsourced activities include SAP based Human Resource and payroll application management. The contract includes employee administration and payroll processing. It also covers self service and environmental health.
While the company had the option to take the Software as a Service (SaaS) route, they have decided to outsource the application management service, this has raised some confusion among the observers. The main reason behind outsourcing to Accenture is the existing relationship Shell has with the service provider, which was developed over the past 15 years with outsourcing of other business activities to Accenture.
At present, 90,000 employees in Shell spread across 60 countries across the globe use SAP based systems. Based on the contract the consultancy will support Shell with maintenance services which includes data management, preventive maintenance, and management documentation. The service provider is also expected to provide support services such as service desk support, user access management, incident resolution, and technical support.
The business processes that are outsourced to Accenture will be delivered through its Global Delivery Network using facilities in India and Philippines. The consultancy will design, develop, test, and implement improvements to the application that are being currently used by Shell.
According to Shawn Collinson, global client partner for the outsourcing contract, the capabilities of Accenture in the areas of SAP has enabled them to make improvements in the service level, along with decrease in the costs and risk involved with rich and emerging application environments. He added that in addition to enabling them to match the global footprint of multinational clients, the global delivery model also helps them to respond to dynamic customer requirements.
Accenture is a global technology, consulting and outsourcing firm which is spread across 120 countries. The company employees more than 244,000 people, who serve the clients with unmatched experience and capabilities that spans all industries and business functions. They have partnered with businesses and governments to help them become high performers. During the fiscal year ended August 31, 2011, the company had generated revenue of USD 25.5 billion.
The energy giant Shell had announced an aggressive standardization, simplification and offshoring programme to cut cost by USD 3 billion, in February 2010. In addition to Accenture, Shell has entered into outsourcing agreements with Wipro, IBM and Logica.