HR Vs Procurement — Who Runs the Show?

TUESDAY 16:00‐17:00 OTTER/ESPERANCE

Concurrent Session: Leadership and Execution HR vs Procurement —Who Runs the Show?

Moderator: Matt Norton, Research Analyst, Staffing Industry Analysts Panellists: . Richard Jackson, Managing Director, Hays Talent Solutions . Andy Moffitt, Group Professional Services Director, Computacenter . Jonathan Winters, VP, Sourcing Team Lead, Bank of America Merrill Lynch

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HR vs Procurement —Who Runs the Show?

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. The process of obtaining goods and services from preparation and processing of a requisition through to receipt and approval of the invoice for payment. It commonly involves (1) purchase planning, (2) standards determination, (3) specifications development, (4) supplier research and selection, (5) value analysis, (6) financing, (7) price negotiation, (8) making the purchase, (9) supply contract administration, (10) inventory control and stores, and (11) disposals and other related functions.

Source: www.businessdictionary.com

. The administrative discipline of hiring and developing human capital so that they become more valuable to the organisation. Human Resource management includes (1) conducting job analyses, (2) planning personnel needs and recruitment, (3) selecting the right people for the job, (4) orienting and training, (5) determining and managing wages and salaries, (6) providing benefits and incentives, (7) appraising performance, (8) resolving disputes, (9) communicating with all employees at all levels.

Source: www.businessdictionary.com

Procurement/finance from corporate headquarters 72%

HR from corporate/headquarters 43%

Hiring managers in your organisation 40%

MSP/Master staffing supplier 37%

Procurement/finance (from outside corporate/headquarters) 28%

HR (from outside corporate/ headquarters) 28%

Executives from corporate/HQ (other than HR or procurement/finance) 25% Executives from outside corporate/HQ (other than HR or procurement/finance) 13%

Outsourced procurment/BPO 7%

Source: Staffing Industry Analysts – 2014 Buyer Survey

© 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam CW Program Management Which department is best equipped to manage the CW program day‐to‐day, by respondents' department

15% 9%

23% best

61% the is

day? 46% ‐

to 89% ‐ 68% day manage

26%

to 39%

department 5% 13%

Allprogram respondents Procurement HR Other Which equipped Respondents' department

Procurement HR Other

Source: Staffing Industry Analysts – 2014 Buyer Survey

Which department is best equipped to make a long‐ term strategic plan for your CW program, by respondents' department 8% 2% 2%

23% term ‐

best 48% 48% is

long

94% plan? 75% 22% make 45% to

department 30%

strategic 5%

Which All respondents Procurement HR Other

equipped Respondents' department Procurement HR Other

Source: Staffing Industry Analysts – 2014 Buyer Survey

. Procurement . Human Resources . IT . Finance . Operations . Other

. Moderator: Matt Norton, Research Analyst, Staffing Industry Analysts

. Richard Jackson, Managing Director, Hays Talent Solutions

. Andy Moffitt, Group Professional Services Director, Computacenter

. Jonathan Winters, VP, Sourcing Team Lead, Bank of America Merrill Lynch

MSP Clients 25 25 10 60

Managed Spend $0.9bn $1.0bn $0.3bn $2.2bn

Population 11,000 7,300 3,000 21,300

59% Procurement

20% HR & Procurement

15% HR 4% Business 2% HR, Business & Procurement

Procurement HR Business HR & Business HR, Procurement Business & Procurement Germany 100% –––––

Netherlands 50% 25% 25% – – –

UK 30% 30% – 30% 8% 2%

Australia 20% 20% – 55% 5% –

Procurement HR Business HR & Business HR, Procurement Business & Procurement Germany 100% – – ––– In the UK market we see a move to Netherlands a joined-up approach to ownership 50% 25% 25% of the––– contingent workforce function. UK 30% 30% – 30% 8% 2%

Australia 20% 20% – 55% 5% –

© 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam . As the market matures –we see a more joined‐up approach from all stakeholders in the delivery of an outsourced programme . As markets and programmes mature, cost is not the sole driver of a successful outsourced programme . Contingent outsourced programmes are now enterprise‐wide talent initiatives rather than a cost saving exercise . The range of services provided by outsourced providers has expanded materially and involves a wider range of business stakeholders . As P&L’s strengthen –through the economic recovery –the voice and involvement of the business has increased in all areas of talent acquisition

. Computacenter - One of Europe’s leading vendor independent IT Services companies - 2014 turnover £3.1bn - £86m EBIT - 14,000+ employees . Contingent Workforce - 2180 contingent workers across Europe (Q4 2014 average per day) - 1350 UK - 700 DE - 130 FR - €130m spend

Full MSP & VMS • MSP in existence since 2001 • VMS added in 2009 and upgraded in 2011 • Current MSP provider ‐ Hays • Covers 95% of total spend • Delivers cost savings, quality, control and speed of response

© 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Approach in 3 Countries PSL moving to MSP & VMS • 5 Platinum Partners with long tail of other providers •Only 40% of spend through Platinum Partners –partner selection de‐centralised, administration centralised • Complex compliance environment and getting tougher • Tender process completed in 2014 to implement MSP & VMS solution, preferred partner selected •Go‐live planned for 1st July 2015 to deliver UK benefits with Delivers cost savings, quality, control and speed of response

PSL • Smaller numbers compared to UK and DE and PSL recently brought under control • New PSL processes implemented in Q1 2015 • Plan to investigate MSP & VMS solution in H2 2015 ready for implementation programme in 2016 with one of either the UK or DE partner

. Over 80% of the contingent workforce is involved in delivering front‐line services to Computacenter customers ‐ this drives the thinking . The direct relationship between Computacenter service management and the MSP provider leads to a better service for the customer and improved outcomes for Computacenter . The relevant operational/service manager is accountable for all aspects of customer delivery including resourcing. The MSP provider is part of the solution, regarded as a virtual member of the service delivery activity . Speed of response to resolve issues and new engagements. Short notice, large requests are a feature of the service . Regular regional service reviews with operational management allow the MSP provider to get “under the skin” of service delivery leading to improved quality and proactive and innovative solutions

. Use of contingent workers is embedded into operational strategy against which Operations are held accountable ‐ Cost models, delivery methodology, quality/customer satisfaction . Over 50% of engagements are covered by pre‐determined rate cards. When not, operational managers are better placed to understand the market e.g. a Consultancy manager knows the market value of a Citrix Consultant as he/she recruits permanent and contracted . Procurement best practice is engaged for tender processes but decision making and on‐going contractual relationship and management is through Operations

© 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Five Key Business Segments Globally . Consumer and Business Banking . Consumer Real Estate * . Global Wealth and Investment Management . Global Banking . Global Markets

In Numbers . Revenue ‐ $89Bn . Vendor Spend ‐ $23Bn p/a . EMEA: 23 Countries (150 globally) . EMEA: Circa 9,000 Permanent FTE *Not a business line in EMEA . EMEA: Circa 1,000 Contractors

© 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam . Appointed in 2010 / 2013 Pontoon provide two MSPs in EMEA: ‐ Bank of America Merrill Lynch (since 2013) ‐ MBNA (since 2010) . Over 1,000 contingent workers p/a, covering a huge range of skills within a high complexity, high risk environment . The MSP provides resources to the Bank faster and cheaper than the Bank could do themselves

© 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam . Appointed in 2014, AMS provide the RPO for all 23 of our EMEA territories, recruiting for a wide variety of critical roles at all levels across the EMEA business. . AMS are responsible for the end to end hiring process for any permanent staff outside of Campus, Front Office and MBNA . . AMS have experts across multiple industries, this helps BAML gain access to resources pools that we couldn't otherwise see.

. Both services are fully integrated in to our onsite HR teams, and many in the business wouldn't know that they aren't BAML employees. . Both services also manage the Bank’s preferred supplier lists: allowing the Bank to: ‐ Receive one invoice for all workers over a given period ‐ Be free of managing multiple agency relationships . Both services are charged with 100% fulfilment regardless of channel / source. Various tools are used to ensure that fulfilment doesn’t compromise one of the four key tenets of: quality, cost, speed and risk . Both services are a blend of onsite and offsite maximising the service visibility whilst ensuring non client facing tasks are performed offsite

Which department manages your CW program? Procure‐ Industry ment HR Other Finance/insurance 63% 34% 3% Manufacturing 48% 45% 6% Mining, extraction and utilities 60% 40% 0% Transport/warehousing 36% 36% 27% Pharma/biotech/med 53% 47% 0% Tech/telecom 44% 52% 4% Number of employees 1,000‐4,999 employees 39% 57% 4% 5,000‐9,999 employees 38% 55% 7% 10,000‐19,999 employees 43% 46% 11% 20,000‐49,999 employees 54% 41% 5% 50,000‐99,999 employees 46% 39% 14% 100,000+ employees 59% 34% 7% All respondents 48% 45% 8% n=185

Source: Staffing Industry Analysts – 2014 Buyer Survey

© 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam © 2015 Crain Communications Inc. All rights reserved. 21‐22 APRIL 2015 Hotel Okura, Amsterdam Which function is best equipped to develop a long term strategic plan for your CW program?

. Procurement . Human Resources . IT . Finance . Operations . Other

. Leave business card at the end of the session

Don’t forget to provide feedback

HR vs Procurement —Who Runs the Show?

Rate this session by accessing the evaluation from your Conference Mobile Community OR tap the iPad screen as you exit.