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posted on Jul 27, 2016 by Gary Bragar
Though Excelity Global is a new name and brand, Excelity was formerly the Asia Pacific payroll business of Aon Hewitt, which was acquired by Everstone Capital in 2015. I recently interviewed a Fortune 10 multinational conglomerate that has been an Excelity payroll outsourcing client in China since 2004 to understand its expansion plans in Asia Pacific.
The company has a history of aggressive growth, including mergers & acquisitions, and wanted to centralize and standardize its payroll services across its new entities being established, all on one platform. Excelity was chosen in 2004 due to its ability to scale and quickly deploy, and its ability to partner, which has remained a key renewal criteria for the client throughout its journey with Excelity.
Contract Scope & Expansion
The contract began with only China in scope in 2004, and Excelity became an approved global vendor. In 2013, Hong Kong was added, as was Taiwan in 2015. In Q3-Q4 2016, Korea will be added. Although there are some countries still providing payroll in-house, the company is exploring more opportunities. In China, Hong Kong, and Taiwan there are ~15,000 employees across ~48 legal entities in scope. Korea will be an additional ~1,000 employees.
Services in scope include:
Governance, SLAs & Benefits
Governance includes quarterly leadership team reviews and monthly operations meetings which includes review of metrics/SLAs and process improvement opportunities.
Metrics include timeliness and accuracy of pay and tax filing, issue resolution response time, and compliance with local tax laws. To date, SLA targets are being met, including accuracy of 99.9% and timeliness of 99%. Additional benefits obtained include:
Lessons Learned & Best Practices
These include:
Outlook
This Excelity client’s global strategy is to expand payroll outsourcing, so I expect to see additional countries added in 2017 and beyond. As Excelity currently supports ~450 client organizations across 17 countries in Asia Pacific, I expect Excelity to continue to meet the client’s needs by paying particular attention to best practice processes and effective governance.