Royal Mail seeks bids for new SAP-based HR system

Royal Mail is planning a three-year revamp of its SAP-based human resources system

Royal Mail is planning a three-year revamp of its SAP-based human resources system.

The new system will consolidate and integrate information from legacy payroll and HR admin systems, a multitude of bespoke point systems and a plethora of local spreadsheets into a single SAP ERP HR system, Royal Mail said.

The system will support up to 25,000 users in Royal Mail Letters, ParcelForce, and Post Office business units. Applications will include payroll, organisation management, employee hire, induction and exit, time and attendance management, expense management, employee performance management, learning and development, knowledge and communication reporting, manager and employee self-service capability, strategic HR planning, health and safety, and corporate social responsibility. It will integrate with a web-based recruitment package.

Royal Mail expects to negotiate the final terms of the contract.

Royal Mail is currently one of systems integrator CSC's largest customers in Europe. In 2003 an CSC-led consortium won a 10-year, £1.5bn outsourcing deal with Royal Mail. A CSC spokesman said it was considering responding to the latest tender.

Interested parties have until 17.00 on 12 January 2009 to respond.

Royal Mail Group's new HR system will affect the management of:

• 200,000 people, of which 155 000 are paid weekly

• 1,300 grades

• 4,200 pay points

• 3,000 allowances

• 5,200,000 overtime payments per year

• 66,000 employee record changes per year

• 40,000 people recruited per year (including 20 000 temporary workers at Christmas)

• 520,000 calls a year to the call centre

• 2,000+ sites across the UK.

Read more on IT outsourcing