Sandvik Signs 10-Year HR Outsourcing Agreement with Accenture
STOCKHOLM; Nov. 16, 2004 – The Swedish engineering group Sandvik has signed a 10-year agreement to outsource portions of its human resources (HR) services to Accenture (NYSE: ACN). The outsourcing contract is part of a wider initiative within Sandvik to better align its human resources with its business needs.
The services will be delivered through Accenture HR Services, an Accenture business that provides third-party human resource solutions, including people-management services. Accenture will provide administrative-related services in the areas of resourcing, customer services, competence development, performance management, reward and recognition and workforce administration.
Under the contract, Accenture will oversee Sandvik’s HR operations in Finland, the United States and Sweden, and affected employees at Sandvik will be offered employment at Accenture. Additional terms of the contract were not disclosed. Accenture will use its global delivery network to provide services to Sandvik and will also establish a new service center in Sandviken. It is the intention of Accenture and Sandvik to include France, Germany, the United Kingdom, South Africa, India and Australia in the agreement at a later stage.
"We are teaming with Accenture because they presented the best solution to fully support our new way of working and their global structure is best-suited to serve all of our major locations,” said Carina Malmgren-Heander, group vice president of Human Resources at Sandvik. "Our ability to achieve economies of scale and critical mass on our own has its limitations. With Accenture’s expertise and established service center solutions, we will be able to provide a common global standard for, and ensure the cost effectiveness of, our HR services.”
“Through this agreement, the remaining HR operations within Sandvik will be able to focus more on core business activities,” said Karin Svensson, a partner in Accenture’s Human Performance Service Line. “Sandvik will also be ensured of the cost-effective and high-quality services it requires.”
"We look forward to helping Sandvik expand its HR service capabilities as well as providing ongoing access to our HR expertise," said David Clinton, president of Accenture HR Services. "The very nature of the agreement demonstrates Accenture’s unrivalled ability to deliver HR services internationally and across national boundaries to help companies become high performance businesses."
About Sandvik
Sandvik is a high-technology engineering group with advanced products and world-leading positions in selected areas – tools for metalworking, machinery and tools for rock excavation, stainless steel, special alloys, metallic and ceramic resistance materials as well as process systems and sorting systems. The Group has 37,000 employees in 130 countries, with annual sales of approximately SEK 50,000 M.
About Accenture
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 100,000 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.
About Accenture HR Services
Accenture HR Services, an Accenture business, provides people-management services to enterprises on an outsourced basis. Employing advanced technology and industry-leading human resources practices, Accenture HR Services works in close collaboration with its clients to accommodate the unique needs and characteristics of their business operations and people. In this way, Accenture HR Services enables organizations to concentrate on optimizing their core business activities while reducing their costs and realizing the greatest possible value from all of their assets. Its home page is www.accenture.com/hrservices.
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