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21‐22 April 2015Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.

Concurrent Session: Leadership and ExecutionHR vs Procurement —Who Runs the Show?

Moderator:Matt Norton, Research Analyst, Staffing Industry Analysts

Panellists: Richard Jackson, Managing Director, Hays Talent Solutions Andy Moffitt, Group Professional Services Director, Computacenter Jonathan Winters, VP, Sourcing Team Lead, Bank of America Merrill Lynch

TUESDAY 16:00‐17:00 OTTER/ESPERANCE

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HR vs Procurement —Who Runs the Show?

21‐22 APRIL 2015 Hotel Okura, Amsterdam21‐22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved.

Definitions: Procurement

The process of obtaining goods and services from preparation and processing of a requisition through to receipt and approval of the invoice for payment. It commonly involves (1) purchase planning, (2) standards determination, (3) specifications development, (4) supplier research and selection, (5) value analysis, (6) financing, (7) price negotiation, (8) making the purchase, (9) supply contract administration, (10) inventory control and stores, and (11) disposals and other related functions.

Source: www.businessdictionary.com


Definitions: Human Resources

The administrative discipline of hiring and developing human capital so that they become more valuable to the organisation. Human Resource management includes (1) conducting job analyses, (2) planning personnel needs and recruitment, (3) selecting the right people for the job, (4) orienting and training, (5) determining and managing wages and salaries, (6) providing benefits and incentives, (7) appraising performance, (8) resolving disputes, (9) communicating with all employees at all levels.

Source: www.businessdictionary.com

21‐22 APRIL 2015 Hotel Okura, Amsterdam© 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam

European Contingent Buyer Survey 2014


Which of the following plays a lead role in selecting your suppliers?

Outsourced procurment/BPO

Executives from outside corporate/HQ (other than HR orprocurement/finance)

Executives from corporate/HQ (other than HR orprocurement/finance)

HR (from outside corporate/ headquarters)

Procurement/finance (from outside corporate/headquarters)

MSP/Master staffing supplier

Hiring managers in your organisation

HR from corporate/headquarters

Procurement/finance from corporate headquarters 72%

40%

43%

37%

28%

28%

25%

13%

7%

Source: Staffing Industry Analysts – 2014 Buyer Survey


CW Program ManagementWhich department is best equipped to manage the CW program day‐to‐day, by respondents' department

39%68%

5% 13%

46%

23%

89%

26%

15% 9%6%

61%

All respondents Procurement HR OtherWhich departm

ent is best

equ

ippe

d to m

anage the

CW

program

day‐to‐day?

Respondents' department

Procurement HR Other



CW Program Management

Which department is best equipped to make a long‐term strategic plan for your CW program, by respondents' department

45%

75%

5% 30%

48%

23%

94%22%

8% 2% 2%

48%

All respondents Procurement HR OtherWhich dep

artm

ent is b

est

equipp

ed to

make a long

‐term

strategic plan?

Respondents' department

Procurement HR Other



What functional group are you a part of?

Procurement

Human Resources

IT

Finance

Operations

Other


Which function is best equipped to develop a long term strategic plan for your CW program?

Procurement

Human Resources

IT

Finance

Operations

Other


HR vs Procurement – Who Runs the Show?

Moderator: Matt Norton, Research Analyst, Staffing Industry Analysts

Richard Jackson, Managing Director, Hays Talent Solutions

Andy Moffitt, Group Professional Services Director, Computacenter

Jonathan Winters, VP, Sourcing Team Lead, Bank of America Merrill Lynch


Global MSP Clients


UK&I CEROW APAC Total

MSP Clients 25 25 10 60

Managed Spend $0.9bn $1.0bn $0.3bn $2.2bn

Population 11,000 7,300 3,000 21,300


Who owns the contingent workforce function?

59% Procurement

20% HR & Procurement

15% HR

4% Business

2% HR, Business & Procurement


Geographically – Who owns the contingent workforce function?

Procurement HR Business HR & Procurement

Business HR,Business & Procurement

Germany100% – – – – –

Netherlands50% 25% 25% – – –

UK30% 30% – 30% 8% 2%

Australia20% 20% – 55% 5% –


Geographically – Who owns the contingent workforce function?

Procurement HR Business HR & Procurement

Business HR,Business & Procurement

Germany100% – – – – –

Netherlands50% 25% 25% – – –

UK30% 30% – 30% 8% 2%

Australia20% 20% – 55% 5% –

In the UK market we see a move to a joined-up approach to ownership of the contingent workforce function.


As the market matures – we see a more joined‐up approach from all stakeholders in the delivery of an outsourced programme

As markets and programmes mature, cost is not the sole driver of a successful outsourced programme

Contingent outsourced programmes are now enterprise‐wide talent initiatives rather than a cost saving exercise

The range of services provided by outsourced providers has expanded materially and involves a wider range of business stakeholders

As P&L’s strengthen – through the economic recovery – the voice and involvement of the business has increased in all areas of talent acquisition


Computacenter and CW Overview

Computacenter- One of Europe’s leading vendor independent IT Services companies- 2014 turnover £3.1bn- £86m EBIT- 14,000+ employees Contingent Workforce

- 2180 contingent workers across Europe (Q4 2014 average per day)- 1350 UK- 700 DE- 130 FR

- €130m spend


Approach in 3 Countries

Full MSP & VMS• MSP in existence since 2001• VMS added in 2009 and upgraded in 2011• Current MSP provider ‐ Hays• Covers 95% of total spend• Delivers cost savings, quality, control and speed of response


Approach in 3 CountriesPSL moving to MSP & VMS• 5 Platinum Partners with long tail of other providers• Only 40% of spend through Platinum Partners – partner selection de‐centralised, administration centralised• Complex compliance environment and getting tougher• Tender process completed in 2014 to implement MSP & VMS solution, preferred partner selected• Go‐live planned for 1st July 2015 to deliver UK benefits with Delivers cost savings, quality, control and speed of response


Approach in 3 Countries

PSL• Smaller numbers compared to UK and DE and PSL recently brought under control

• New PSL processes implemented in Q1 2015• Plan to investigate MSP & VMS solution in H2 2015 ready for implementation programme in 2016 with one of either the UK or DE partner


The relationship sits within operations – why?

Over 80% of the contingent workforce is involved in delivering front‐line services to Computacenter customers ‐ this drives the thinking

The direct relationship between Computacenter service management and the MSP provider leads to a better service for the customer and improved outcomes for Computacenter

The relevant operational/service manager is accountable for all aspects of customer delivery including resourcing. The MSP provider is part of the solution, regarded as a virtual member of the service delivery activity

Speed of response to resolve issues and new engagements. Short notice, large requests are a feature of the service

Regular regional service reviews with operational management allow the MSP provider to get “under the skin” of service delivery leading to improved quality and proactive and innovative solutions


The relationship sits within operations – why?

Use of contingent workers is embedded into operational strategy against which Operations are held accountable

‐ Cost models, delivery methodology, quality/customer satisfaction

Over 50% of engagements are covered by pre‐determined rate cards. When not, operational managers are better placed to understand the market e.g. a Consultancy manager knows the market value of a Citrix Consultant as he/she recruits permanent and contracted

Procurement best practice is engaged for tender processes but decision making and on‐going contractual relationship and management is through Operations


Five Key Business Segments Globally

Consumer and Business Banking

Consumer Real Estate *

Global Wealth and Investment Management

Global Banking

Global Markets

In Numbers Revenue ‐ $89Bn

Vendor Spend ‐ $23Bn p/a

EMEA: 23 Countries (150 globally)

EMEA: Circa 9,000 Permanent FTE

EMEA: Circa 1,000 Contractors*Not a business line in EMEA


Appointed in 2010 / 2013 Pontoon provide twoMSPs in EMEA:

‐ Bank of America Merrill Lynch (since 2013)

‐MBNA (since 2010)

Over 1,000 contingent workers p/a, covering a huge range of skills within a high complexity, high risk environment

The MSP provides resources to the Bank faster and cheaper than the Bank could do themselves


Appointed in 2014, AMS provide the RPO for all 23 of our EMEA territories, recruiting for a wide variety of critical roles at all levels across the EMEA business.

AMS are responsible for the end to end hiring process for any permanent staff outside of Campus, Front Office and MBNA .

AMS have experts across multiple industries, this helps BAML gain access to resources pools that we couldn't otherwise see.


&

Both services are fully integrated in to our onsite HR teams, and many in the business wouldn't know that they aren't BAML employees.

Both services also manage the Bank’s preferred supplier lists: allowing the Bank to:

‐ Receive one invoice for all workers over a given period

‐ Be free of managing multiple agency relationships

Both services are charged with 100% fulfilment regardless of channel / source. Various tools are used to ensure that fulfilment doesn’t compromise one of the four key tenets of: quality, cost, speed and risk

Both services are a blend of onsite and offsite maximising the service visibility whilst ensuring non client facing tasks are performed offsite


CW Program Management

IndustryProcure‐ ment HR Other

Finance/insurance 63% 34% 3%Manufacturing 48% 45% 6%Mining, extraction and util ities 60% 40% 0%Transport/warehousing 36% 36% 27%Pharma/biotech/med 53% 47% 0%Tech/telecom 44% 52% 4%

Number of employees1,000‐4,999 employees 39% 57% 4%5,000‐9,999 employees 38% 55% 7%10,000‐19,999 employees 43% 46% 11%20,000‐49,999 employees 54% 41% 5%50,000‐99,999 employees 46% 39% 14%100,000+ employees 59% 34% 7%

All respondents 48% 45% 8%n=185

Which department manages your CW program?



Which function is best equipped to develop a long term strategic plan for your CW program?

Procurement Human Resources IT Finance Operations Other


Sample RACI Chart

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Rate this session by accessing the evaluation from your Conference Mobile Community OR tap the iPad screen as you exit.

DIGITAL SURVEYS

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HR vs Procurement —Who Runs the Show?

concurrent session: leadership and hr vs …...concurrent session: leadership and execution hr vs...

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