- A stable local partner who will participate in the start-up of a global IT centre and ensure recruitment as well as the overall flow of human resources;
- Continuous cost reduction and streamlining of services after the start of cooperation.
- Change of contract from personnel leasing to a service model (the customer does not pay according to the number of employees of the centre but according to the amount of services used);
- Reduction of unit price of the provided services and quality improvement by increasing productivity, motivation, and commitment of external staff.
- Increase of productivity thanks to relieving HP managers from routine processes related to the operation of the centre; Reduction of the unit price for individual types of services by up to 15% over the course of three years;
- Effective control by means of selected indicators; Improvement of compliance with established quality criteria;
- Reduction of employee fluctuation and increase of their satisfaction and engagement;
- Quality assurance thanks to an option in the contract to apply a discount on the price of services.
From personnel leasing to outsourcing
At first, employee leasing
When the decision to build a new IT centre in Slovakia was made, HP decided to acquire human resources through personnel leasing.
The company chose Soitron for its partner, whose task was to recruit people and subsequently lease them to HP. After the initial phase, when the centre was employing several hundred people, HP and Soitron began talking about streamlining. Naturally, every client wants to save costs. But to invoice less for the leased people at a time, when labour cost of IT specialists grew, was unacceptable for Soitron. “Therefore, we decided to look for inefficiencies at the centre,” says Tomáš Turkovič, Director of Human Resources at Soitron.
“While existing model was suitable for the early stage of the relationship it shortly showed to be suboptimal to meet HP needs, as it did not stimulate the environment of continuous productivity and quality improvements, neither it provided scalability and all that was critical for the overall success. As Soitron gained the deeper knowledge of the HP environment, tools and processes, and become knowledgeable of true HP needs we have decided to move out of the staff augmentation model towards service based delivery.”
Enterprise Services Manager at HP
Seeds of change
The management of Soitron saw several possibilities to make the centre more efficient. The number and structure of employees was initially determined by HP managers on the basis of their own criteria.
So the idea was born to change, at least for a part of the IT centre, the entrenched personnel leasing into a model in which the client would not pay for people but for server management. “To avoid reducing prices, we proposed to the customer that, while maintaining the same amount of invoices, we would gradually provide a larger volume of services – i.e. the unit price for the management of one server would decrease. Or in other words, that within two to three years, the customer would pay 10 to 15% less for unit services,” explains Pavol Németh, IT Director at Soitron.
“We realised that we had a better overview of the workload of people and of what was going on in the workplace. Therefore, we suggested changing this model so that the amount of work and the number of people would be managed by us.“
HP SLOVAKIA SATISFACTION SURVEY
Overall satisfaction with service provided by Soitron
Business alignment–relationship management
Ability to understand business requirements
Quality of service
“We proposed to the customer that, while maintaining the same number of invoices, we would gradually provide a larger volume of services – i.e. the unit price for the management of one server would decrease. This ultimately means, that within two to three years, the customer would pay 10 to 15% less for unit services.”
Technical Director at Soitron
Benefits of Outsourcing
Right on time
Get the technical resources you need, when you need them to meet your project requirements
Don’t bother with HR stuff. Leave hiring, training, payroll, salaries, firing etc. out of your agenda
Easy to manage
Keep the optimal cost and head-count structure
Get the resources you need quick and for exact time period you need them.
Let someone else to help you run the supporting functions and focus on key
Be prepared and flexible during peaks and downturns
European ITO Center (EITOC) HP Slovakia is the biggest service centers in area and provides services for thousands of servers in EMEA region.
Centrum is focused on solutions and support of UX and Windows systems and networking in three lines.
Each line has defined rights and capacity of solving problems.
1. Line: solves 60% of all system failures
2. Line: is dedicated to solve more complicated technical issues and strive to remove system errors
3. Line: is the highest line of solutions and support of UX, Windows and networking. Is responsible for sustainable development of systems and implementation of all improvements within servers