BearingPoint and SAP Japan Form Strategic Alliance in the Field of Global Personnel Management Solutions

Promoting visualization of personnel information and optimization of human resources on a global scale

TokyoBearingPoint Inc. and SAP Japan Co., Ltd. today announced that the companies have formed a strategic alliance in the field of consulting and system construction for solutions that improve the efficiency of personnel management on a global scale.

The global personnel management solutions provided by BearingPoint and SAP Japan help businesses optimally deploy employees worldwide by enabling them to visualize the human resources of a business. In addition, through objective monitoring of data, these solutions enable the administration of process management and risk management regarding employees at overseas centers. They also help businesses reduce excess personnel costs and prevent the loss of human resources through employee turnover.

Many Japanese companies engaged in global business development are establishing centers worldwide, with the aim of market penetration and cost reduction. Meanwhile, in manufacturing and logistics, Japanese companies have organized their processes and systems at a global level, in order to construct business infrastructure from an early stage. On the other hand, regarding global personnel management, most companies have not been able to respond adequately. In many cases, personnel management has been “Japan-centric,” relying on a limited number of people, notably those seconded from a head office in Japan.

According to the Survey of Personnel Management by Japanese Global Businesses conducted in 2005 by the Japan Institute for Labor Policy and Training, among the global Japanese companies surveyed, as issues, 33.4% cited insufficient ability of local middle management, and 35% cited insufficient communication between head office and overseas centers. In addition, the following issues were cited: Field management capabilities of staff assigned from Japan were insufficient, first-rate personnel could not be recruited locally, and conflicts arose regarding local labor conditions and labor relations. To managers, these are extremely important business issues.

Accordingly, SAP Japan, building on the global personnel management capabilities of mySAP ERP HCM and the statistical analysis capabilities of NetWeaver Business Intelligence, has incorporated BearingPoint’s consulting know-how regarding global personnel management, creating an implementation model for global personnel management systems.

BearingPoint, based on the know-how it has accumulated through an extensive track record in global personnel consulting, will provide all-in-one consulting services regarding global personnel management, while utilizing the implementation model created by SAP Japan. These consulting services will include situational analysis, basic conceptual planning of new businesses and new systems, system design and construction, development of overseas centers, and operational support.

BearingPoint and SAP Japan aim to provide such services to three corporate groups during the coming year, for sales revenue of 300 million yen, and to 12 corporate groups over the next three years, for sales revenue of 2 billion yen.