HR Shared Services Transformation

ISG supported a data storage company’s HR shared services transformation from strategy through signed contracts.



A data storage company’s strategic assessment of its global HR, IT, and finance and accounting (F&A) operations recommended shared services as a means to achieve $30 to 50 million in annual savings needed to meet financial targets. At the same time, it needed to solution its efforts to integrate a global acquisition. 
The company launched a broad multi-function request for proposals (RFP) to explore outsourced shared service delivery. It aimed to achieve financial savings quickly, while bringing improved capability, global technology and inquiry support and a high-quality HR transactional service. 
The company engaged ISG to assist in holistic solution design for both RFP and retained activities across HR, IT and F&A work streams.
Imagining IT Differently

Imagining IT Differently

ISG helped envision a target operating model (TOM) design and develop a business case for the company’s 24,000 employees located in over 38 countries
Leveraging market knowledge and industry experience, ISG designed an outsourced HR service delivery model that provided tiered administration support to 12 countries in North America and Western Europe.  The solution included an industrial-strength portal and call center inquiry support in 5 languages for employees, managers and HR. 
Based on mark-to-market (M2M) and market knowledge, ISG identified service providers with the desired capabilities, led the RFP through to finalist selection and supported all contracting activities. ISG provided formal transition planning and contracting support on 3 HR contracts.

Future Made Possible

  • The company achieved $1 million annual HR run rate savings to fund a global Workday human capital management (HCM) and comprehensive application management support services.
  • The company received combined savings of $46 million, meeting savings goals.
  • The contracted human resource outsourcing (HRO) services provided an end-to-end customer experience for the in-scope processes.
  • The solution incorporated planning for transition roles and an ongoing governance model to underpin and monitor value realization. 
  • Additionally, the company was able to include recent merger populations in the final solution and is positioned to more readily accommodate future mergers and acquisitions (M&A) growth.