L’Oreal: outsourcing and SaaS instead of Parus and own HRMS

L'Oreal companies in Russia came to a conclusion that outsourcing of non-key personnel and financial processes is much more profitable, than their independent support. Earlier L'Oreal refused payroll on Parus for benefit of outsourcing of settlement functions, and now instead of registration of personnel in own system uses the Quinyx HRM system according to the SaaS model.

L'Oreal in Russia, the producer and the supplier of cosmetic products, continues to develop one of the outsourcing projects, largest in Russia, in the field of personnel management. A few years ago settlement process of salary was automated based on the solution Parus, however, then in L'Oreal decided that some HR processes are non-core activity for the company and transferred them to outsourcing of UCMS Group company.

The outsourcing model is applied also to some other business processes. "We always applied this model in Russia. The process list of L'Oreal which are transferred to the third service provider constantly is replenished, and processes – evolve", - the reimbursement manager and to privileges of L'Oreal Irina Yashchenko told.

Cooperation of UCMS Group and Loreal began in 2005 with the project of outsourcing of payroll calculation. At that time personnel management and office-work in L'Oreal was implemented within internal systems. They had global character and were not tied to specifics of the Russian legislation, Irina Yashchenko reported. The situation cardinally changed in the middle of 2009 when process of conducting personnel records could be transferred to the SaaS model also with assistance of UCMS Group.

The SaaS model which L'Oreal uses for personnel management is a certain intermediate link and represents outsourcing of a personnel system. The difference consists that in a system which is provided to UCMS Group according to the lease agreement the staff of the company, but not employees of the outsourcer works.

Transition of the personnel to SaaS was complete about the second half of 2009, at the beginning of 2010 the project on transfer of payroll calculation to the new system of calculation was started. Earlier UCMS Group considered salaries in the Scala system while personnel management was initially transferred under the new product UCMS Group – the Quinyx WorkForce system. It is logical that in L'Oreal decided to keep eventually payroll calculation and personnel records on one platform.

Now outsourcing and SaaS of model based on Quinyx WorkForce covers payroll and personnel records of all Russian representative office: it is about 1 thousand employees at the Moscow office. The new plant in the Kaluga region at which by the end of 2011 about 600 people will work will also be connected to this model.

Besides, the main project constantly develops. For example, separation of financial postings into the Kaluga and Moscow offices, special forms of additional reports on salary and personnel was finished recently and also integration with the ERP system of SAP is performed.

In plans of the company implementation of opportunities of personnel self-service (self-service) which will be available to one and all staff of the company. They will get access to personnel the portal where they will be able to leave independently requests, for example, about a holiday and also to monitor the employment contracts and to order the necessary references.

According to Irina Yashchenko, use of the SaaS model saves the companies time and money. "Why to us to spend a lot of money for licenses, to give IT personnel excess full-time job and to wait for several months until a system is implemented? And all this is without any guarantees of payback. Within our cooperation with UCMS Group about two months for complete setup of a system under needs of L'Oreal were required. But if we bought the in-house system, then these terms would increase several times", - she commented.