New Application Outsourcing Agreement Complements BPO Arrangement
STOCKHOLM; Sept. 12, 2005 – Sandvik, a Sweden-based global engineering company, will outsource the management of its human resource applications to Accenture (NYSE: ACN) under a three-year agreement. Financial terms of the contract were not disclosed.
The contract complements a business process outsourcing (BPO) agreement the two companies signed in late 2004 under which Accenture is managing portions of Sandvik’s human resources administrative services.
Under the terms of the new contract, Accenture will provide application maintenance and enhancement services for Sandvik’s existing PeopleSoft platform for HR Management. Technical help desk services will be provided from Accenture’s shared service centers in Sandviken, Sweden and Chicago, Illinois, and the application support and maintenance services will be provided from Sandviken and Accenture’s delivery center in Bangalore, India.
“This agreement allows Sandvik to concentrate on its core business activities while enjoying a higher quality of services,” said Charlotta Lundell, a partner in Accenture’s Industrial Equipment practice. “Accenture is committed to providing Sandvik with cost-effective solutions and services that will help the company achieve high performance in its business.”
“Accenture has been chartered to leverage its deep outsourcing experience and leading technology to help Sandvik realize better value on its IT investments,” said Don Richards, managing director of Accenture’s global Application Outsourcing business. “Sandvik will benefit by a more reliable delivery of HR services to its worldwide workforce and lower costs.”
Sandvik is a high-technology, engineering group with advanced products and a world-leading position within selected areas. Worldwide business activities are conducted through representation in 130 countries. The Group has 38,000 employees and annual sales of approximately SEK 55 billion.
Accenture is a global management consulting, technology services and outsourcing company. Committed to delivering innovation, Accenture collaborates with its clients to help them become high-performance businesses and governments. With deep industry and business process expertise, broad global resources and a proven track record, Accenture can mobilize the right people, skills and technologies to help clients improve their performance. With more than 115,000 people in 48 countries, the company generated net revenues of US$13.67 billion for the fiscal year ended Aug. 31, 2004. Its home page is www.accenture.com.