In the largest comprehensive HRO deal this year year, IBM Global Services has won a 10-year, $324 million multi-process contract from Bristol-Myers Squibb.
Among the services included in deal scope are payroll administration, compensation management, benefits administration, recruiting, learning services, call center support, and related IT support. IBM will also implement an SAP HR solution and integrate Bristol-Myers Squibb’s global workforce data into a single HR portal for access by employees, managers, and HR personnel. IBM will support Bristol-Myers Squibb’s operations in the U.S., Puerto Rico, U.K. Ireland, France, Germany, Italy, Spain, and Belgium, with limited support for 40 other country operations around the globe. Service delivery will be provided from delivery centers in the U.S. plus call center services in Manila and Budapest.
This is the largest multi-process HR BPO deal to be awarded since last year’s $1 billion contract that Johnson & Johnson signed with Convergys in May 2007. According to sourcing advisory firm NelsonHall, a number of pharmaceutical companies are outsourcing back-office support functions, including GlaxoSmithKline, which awarded a $171 million, 10-year multi-process contract to ACS in February 2007.
“Dynamic change in the pharmaceutical industry is forcing companies to become more streamlined in their operations,” said Philip Guido, IBM general manager, Managed Business Processing Services, Americas. “In order to manage talent within an organization, a company must have an integrated view into its employee population and workforce data. The approach that Bristol-Myers Squibb is taking for its HR function will be integral to helping it better serve its customers and support its strategic transformation to a BioPharma leader.”