London, 3rd April 2013 – East Cheshire NHS Trust has awarded a four-year, single supplier framework contract to arvato UK & Ireland, which will see the business process outsourcing partner acquire and operate its HR service provider, Cheshire HR Service. The deal will deliver immediate cost savings to the Trust and enable arvato to enhance the centre’s offering and proactively market its services to other public bodies.
Under the agreement arvato will acquire Congleton-based Cheshire HR Service and provide high quality, efficient professional and transactional HR services to East Cheshire NHS Trust and the centre’s other existing customers, including Electronic Staff Record (ESR), payroll administration, learning & development and HR consultancy.
The agreement includes a framework contract under which arvato will maximise the centre’s potential for growth by competing for additional outsourced work from the NHS, local authorities and other health and social care bodies throughout the UK, including AQP’s (Any Qualified Providers).
The deal will deliver immediate cost savings to East Cheshire NHS Trust and longer term financial benefits which will be realised as arvato attracts new customers to use the service.
All 57 employees of Cheshire HR Service, including its senior management team, will transfer to arvato on their current terms. The centre will continue to be led by Cheshire HR Service Managing Director Sally Campbell and her established management team. The transition to arvato is expected to be completed by April 2013.
Cheshire HR Service was established in 2006 as a blueprint for NHS HR shared services. It has been run as an arm’s length organisation hosted by East Cheshire NHS Trust and generates annual revenues of £2m. The centre is staffed by HR consultants, Learning and Development and HR Administrative professionals and specialists with extensive experience in delivering people management services to the NHS and other organisations.
The HR service’s offering is underpinned by both the professional expertise of Cheshire HR Service and a range of established innovative products which include HR Vision, WIDW and HR Direct.
John Wilbraham, Chief Executive, East Cheshire NHS Trust, said: “Cheshire HR Service has developed an excellent reputation for providing innovative, market leading HR services to East Cheshire NHS Trust and the wider NHS. The time is right to hand the HR Service over to a strategic commercial partner to take the service forward, leverage its success and ensure it reaches its full potential. Under arvato’s leadership Cheshire HR Service will enhance service offerings, drive efficiencies and deliver significant cost savings for East Cheshire NHS Trust underpinned by investment in technology.”
“As the NHS continues to undergo unprecedented changes, shared services have a clear role to play in transforming back-office functions and helping the NHS to deliver targeted efficiency savings,” said Matthias Mierisch, CEO of arvato UK & Ireland. “With our investment there is a significant opportunity to enhance Cheshire HR Service’s offer and expand its reach, allowing a wider range of clients in the health and social care sector to operate more efficiently.”
He added, “This is a strategic acquisition for arvato continuing our growth in the Public Sector whilst both extending and complementing our expertise in shared services with the addition of a leading HR services business in the healthcare sector.”
arvato is one of the world’s leading business process outsourcing companies with over 50 years’ experience in the sector. In addition to its highly successful partnerships with councils such as Sefton Metropolitan Borough Council, Chesterfield Borough Council and Slough Borough Council, its customers include leading international businesses including Microsoft, Renault and AstraZeneca.
Cheshire HR Service was formed in 2006 as a shared service and has grown to provide HR services to a broad range of NHS customers.
The centre provides a full range of HR services including: ESR Administration, Recruitment Administration, Systems Support (ESR), Workforce Information Administration and Analysis, Learning and Development Administration (OLM), Employee Relations, Clinical Skills Training, Leadership & Management, Wellbeing Services and Organisational Development/ HR & L&D Consultancy. The service has also successfully launched a range of workforce information products including HR Vision, WIDW, and HR Direct, designed to provide a one stop shop for HR information and resources to enable organisations to effectively and efficiently manage their workforce.