Serco Case Study
Workforce: 50,000 employees across 4 Geographies
Industry: Services Industry, managing over 600 contracts worldwide.
The project: Business Case and supplier selection for Cloud Based SaaS payroll solution
Serco are seeking a new approach to meet the dual demand for greater efficiency and rising service expectations. Serco need to be able to deliver rapid change and scale-up operations quickly by drawing on global resources, employing the best specialists in each market, instituting more effective systems and empowering our teams to perform better.
The number of contracts Serco has taken on in the UK markets, from prisons to NHS to councils, has led to a complex payroll model with hundreds of T&Cs and multiple pay runs.
Serco has two main aims:
1. Reduction in cost through simplification bya) removing all on-premise systems, and b) simplifying the end to end payroll process.
2. Serco need to improve it’s service to the business and the contracts it takes on as well as strategically growing the business.
We carried out an initial market assessment to understand the options available in the marketplace and the associated costs of different solutions, such as On Premise (BPaaS) vs SaaS.
This enabled us to build a business case to support Serco in going out to a full RFP process. The business case highlighted, amongst other things:
- Current Supplier vs Future Projected supplier costs
- Project implementation costs
- Current vs future projected operating costs
- Pay Back Period
- Price per Payslip
Once the business case was established, we ran a supplier selection process to identify the best supplier to support Serco’s complex public/private sector environment, including:
- Identification of three payroll providers meeting key high level Serco requirements
- RFP process to down select to two providers
- Solution workshops to identify front runner
- Contractual negotiations
- Roll out programme plan
Once the requirements had been refined and the subsequent adjustments to pricing were made, we updated and finalised the business case for board approval. This was supported by a detailed programme plan for first phase countries.