CASE STUDY 19 Outsourcing Rebuilding the Enterprise and its Networks
This mega-site of a large group began its reconstruction. The task was entrusted to BPI and took into account both the enterprise and its environment - introduction of a new performance in the relationships between entities through a policy of mass outsourcing, and modify the geography of the employment through economic development.
Context Company City This historic site grouped together 6500 employees of six of the group's subsidiaries. Two of them were experiencing a significant decline in activity. They were confronted with competition that had been restructured worldwide - private operators had taken over from State customers, consumer prices had dropped by a half in five years. The transformation of this ageing site and a policy of mass outsourcing accompanied by BPI began with the rebuilding of these two subsidiaries.
Task Organise Transfers of Activity The general services and the IS department opened the way - the operators have been well-targeted and the social aspect could be placed at the heart of the action. Each operation began with a communication plan and a Contact-Partner centre to welcome and inform employees. The consultants began the technical steps by outlining the function, then prepared the specifications fixing the social and economic conditions for the transfer. Their reference document was the partnership charter, prepared with a group of volunteer employees. Invitations for tender were launched on a national or European level according to requirements. The consultants handled the negotiating interface between the management, the employees and the partner companies. They prepared the transfer contract, prepared the new group status to be applied in the new company and started up the committees responsible for its application.
Local Economic Development In parallel, the group decided to support the creation of jobs in local SME, both in anticipation of the probable cutting of 300 jobs in another subsidiary and to relativise the group's economic weight in a region in difficulty. To synergise the different parts of the operation the outsourcing partners and the suppliers were particularly targeted. The projects were supported by BPI's specialist consultants and selected on the basis of a real potential for growth.
Perspectives The Conditions for Success Over two years, 504 people and 15 functions were outsourced. The group saved 30% in costs on these activities with, in total, just two hours of stoppages on the site. Though employees could not refuse the transfer on legislative grounds, their mobilisation was indispensable to the success of the operation. The operation banked on profitability resulting from the proximity of the people to the heart of the business. Repositioned in a branch and faced with a customer, employees rebuilt their efficiency at the same time as their professional perspectives. The approach also banked on economic effects - each partner optimised purchase costs in their branch and opened up to new markets.
The 30 projects supported in the framework of the economic development programme planned the creation of 500 jobs in the long term. 18 months later, 200 jobs had been created.
|