BT and Accenture have signed a 10-year, £306m business process outsourcing and transformation contract for human resource administration services - one of the largest renewals of an outsourcing contract for HR services in the world.
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The contract will also significantly expand the reach of services that Accenture has been providing to BT under a previous five-year agreement.
The deal, that takes effect on 1 August 2005, is designed to provide BT with ‘higher levels of workforce management and performance services’ in 38 countries around the globe, along with ‘further cost savings’, according to BT.
The services will continue to be delivered through Accenture HR Services, an Accenture business that provides people management on an outsourced basis, via its global delivery network.
Accenture currently provides HR services to BT’s 87,000 employees and 180,000 pensioners in the UK.
The services to be provided under the new contract include customer contact, recruitment, pension administration, payroll and benefits administration, performance management administration, health and safety, and HR advisory and information services.
David Clinton, president of Accenture HR Services, said: ‘BT’s bold decision in August 2000 to undertake large-scale HR outsourcing has been validated with this new agreement. This is a tremendous vote of confidence in the industry, in the business value of outsourcing, and in Accenture?s ability to deliver a consistent level of global support to multinational clients aiming to achieve high performance in their businesses.’