Outsourcing helps BAe to cut HR costs

first_imgBAe Systems has significantly cut costs while improving service and its ITcapability since it outsourced its HR function a year ago, delegates heard. Alan Bailey and Richard Houghton of HR services company Xchanging, BAe’soutsourcing partner, believe good progress has been made in the 12 months sincethe two company’s agreed an £800m, 10-year deal. Houghton said Xchanging had helped BAe achieve a 10 per cent saving in HRcosts and a radical improvement in service in a number of key areas includinggraduate recruitment, international assignments and pensions. More than 500 BAe HR staff involved in transactional roles transferred toXchanging under TUPE regulations. Almost 200 HR business partners andspecialists will continue to drive the BAe’s strategy and policies andindustrial relations has also been retained within the company as this is seenas strategically important. Working from two centres in Farnborough and Preston the outsourced HR staffprovide services for training and development, remuneration and benefits,recruitment and international assignments. Most of the services are available via a self-service people portal on thecompany’s intranet, which is used by 43,000 UK-based BAe staff. The intranet has also been used for the successful introduction of thefirm’s global performance management programme for its top 6,000 managers,including an online peer review element. Xchanging has already spent £6.5 million in upgrading BAe’s IT systems, withnearly £14 million of further investment in this area in the pipeline. Previous Article Next Article Related posts:No related photos. Outsourcing helps BAe to cut HR costsOn 21 May 2002 in Personnel Today Comments are closed. last_img