TNT will outsource local back-office admin tasks to consultants Accenture to save up to €150 million a year by 2018, with an unknown number of job reductions in various countries.
Under the 5-year business process outsourcing (BPO) contract, Accenture will manage transactional activities related to finance & accounting, procurement and data entry for TNT. The transition will take place in stages between 2015 and the end of 2017.
The move is designed to allow TNT to consolidate and standardise back-office operations, which are now carried out at local level, and is part of its drive to focus on core express delivery activities, reduce indirect costs and improve operational efficiencies.
The contract with Accenture is an important step in establishing Global Business Services, a major project under TNT’s Outlook strategy. As guided during the company’s Capital Markets Day on 18 February 2015, Global Business Services are expected to deliver annual cost savings of between €100 and €150 million from 2018, with the first savings in 2016.
TNT stressed that it will thoroughly discuss the planned scope and timing, as well as social accompaniment measures, with local works councils and employee representatives before implementation.
“The move to global business services will involve a reduction of roles in some back office functions, which we regret. It is too early to provide specifics on numbers and locations,” spokesman Cyrille Gibot told CEP-Research.
Maarten de Vries, TNT’s Chief Financial Officer, said: “Accenture's BPO services will allow TNT to focus on what we do best: delivering our customers’ express parcels and pallets, while enhancing our cost-efficiency and flexibility."
