Setting Up A Shared Service Centre

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Project Report by: Anuj Gupta Isha Agarwal Priyanshu Mansukhani 11PGHR10 11PGHR21 11PGHR39


Agenda • Introduction to Airtel Africa What is a Shared Service Centre Needs and Challenges of setting up shared services in Airtel Africa • • • Methodology and Findings of our research Learnings Recommendations 4/15/12 • • .

Objective • Gauge a basic understanding of shared services setup in Africa Understand role of HR information systems in a shared services centre Conduct a benchmark study of various processes and determine the best practices Define/Propose SLAs for each activity 4/15/12 • • • .

QUALITY and TIME 4/15/12 .Shared Services – Brief Introduction • Provision of a service by one part of an organization or group where that service had previously been found in more than one part of the organization or group • Arguments for Shared Services – ‘Less of a common resource' ‘Efficiency through industrialisation' – • Rationale behind shared services– Optimisation in terms of COST.

Development Phases of a Shared Service Centre 4/15/12 .

Role Of Human Resource Management 4/15/12 .

Airtel Africa – Current Scenario • Access to 15 countries in the region Around 40.1 million subscribers to its already 125 million-plus user base • • Footprint will expand to 17 countries Acquired its 50 millionth mobile customer in Africa within 17 months of acquiring Zain Telecom's Africa 4/15/12 • operations .

The need to set up SSC in Africa • Efficient and optimum utilization of available talent pool and resources – Majority of workforce in Africa is semi skilled Very difficult to find required taskforce in all the regions – • A lot of talent is not willing to move to African region African continent is still underdeveloped Centralization  reduced redundancy of work Release the load of Airtel Gurgaon which currently looks 4/15/12 • • • after the services of Airtel Africa .

Methodology 4/15/12 .

Findings • Departments outsourced to the SSC: – Payroll / Compensation and Benefit Expat Management Learning and Development Facilities Joining formalities and paper work formalities Recruitment – – – – • Payroll/Compensation and Benefits – Generally outsourced by SSC • All relevant documents and approvals are provided by the Comp and Ben team – Set reward scheme for different level of performers 4/15/12 Restructure Comp and Ben structure for the same and all the payroll – .

etc. Gratuity. Maintenance of ERP database and all relevant forms like PF. Leave and travel allowance. Medical check-up for employees.Findings • Recruitment – Internal transfers. to be a part of the SSC or can be hired externally Employees not formulated into teams but categorized according to projects that need to be developed At the time of recruitment SSC has to make sure of following processes: • • • • – – On-boarding exercises. • Learning and Development 4/15/12 – – Talent identification – in-house Demand management of L&D – Comp and Ben team .

The Challenges Ahead • Hiring professionals – – Know the service Local norms and rules of the service followed in the country else training – • Cost benefit analysis – – what services needs to be developed internally versus what needs to be outsourced • No Shared service centre in the African subcontinent Identifying 4/15/12 competencies. services to be moved to SSC • .

HRMS Tools • PeopleSoft HRMS – used by HUL SAP – in use by Wipro Oracle HRMS – used by Airtel Gurgaon • • • SAP is most preferred HRMS tool – First mover advantage Robust Backend support Availability of skilled SAP technicians – ** A detailed study of the above tools is given in the report 4/15/12 – .

Recommendations • Departments in Service Centre in Airtel Africa: – Talent Acquisition Administration including joining formalities and paper work formalities HR Operation Talent Development Payroll / Compensation and Benefit Expat Management – – – – – • Success rate of these services in SSC is more than other services HRIS modules for these services are readily available 4/15/12 numerous vendors including SAP. with • . Oracle.

Key Learnings • The industry is in the phase of understanding the utility of SSC as a concept • Its success critically depends on acceptance to change that the firm undergoes while transforming from decentralized to a centralized form of HR management • Role of technology is immense in making SSC successful – lot of automation. replace manual indulgence 4/15/12 .


cfm Essentials of shared services by Bryan pg=18&utwkstoryid=266 Outsourcing vs. shared services | InfoWorld | Column | 2006-05-30 | By Ephraim Schwartz • http://en. Bergeron Shared Services by Donniel http://www. Schulman 4/15/12 • • • • • • king_and_measurement

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