BUILDING HR EXCELLENCE IN A GLOBAL ENTERPRISE
Industry Engineering, construction, and operations Revenue US$9.8 billion Employees 60,000 Headquarters Mumbai, India Web Site www.larsentoubro.com SAP® Solutions and Services Using the SAP® ERP Human Capital Management solution to establish a Shared Services Center Implementation Partner L&T Infotech Ltd. Implementation Best Practices • Creation of task force to streamline HR processes • Variety of on-site training • Focus on data quality with ongoing data reviews • SAP help desk implemented • Core implementation team created from different business HR groups, who went back as SAP champions to their respective businesses • Data cleansing performed Financial and Strategic Beneﬁts • Better efficiency through automation • Real-time access to HR services and information using self-service portal • Consolidated HR data from across locations, resulting in a single master for employee data • Higher data accuracy and security • Greater transparency for decision making • Easier internal movement in event of employee transfer or promotion • Reduced dependency of line managers on HR for management information systems reports • Increased adherence to company policies • HR’s role focused more on employee development Key Challenges • Support large and diverse global workforce • Improve access to information • Standardize HR processes across locations • Replace manual paper-based processes • Improve HR efficiency and cycle times • Improve data management and security • Expand the role of HR function Why SAP Was Selected • Comprehensive HR functionality • Smooth flow of data from 1 module to another • 1 common portal for employees, managers, and HR administrators • Good analytical tools • Ability to support diverse business units with 1 scalable HR platform • Integration with existing systems • Robust role-based access/authorization Low Total Cost of Ownership • Leveraged cost-effective shared services and single HR platform • Created common template for rollouts across all businesses • Retired multiple stand-alone custom-built systems and paper–based processes • Gained process scalability to support future growth • Used employee data in different systems, saving time and improving HR productivity
Larsen & Toubro (L&T) is a diverse technology, engineering, construction, and manufacturing company with projects in 30 countries. L&T wanted to establish a single database for its employees, to improve local as well as global access to employee information. By choosing the SAP® ERP Human Capital Management solution and a shared services approach, L&T gained greater HR efficiency and is optimizing use of strategic employee data.
Operational Beneﬁts Key Performance Indicator Time for HR to respond to data analysis requests HR report generation time Leave and vacation processing time HR transaction processing time Appraisal processing time Percentage of employees covered by performance management
Impact -20% to -30% -95% -90% -30% -50% 99.9% (up from 60%) 100%
Ability to go through complete process cycle for any HR activity
SAP Business Transformation Study Engineering, Construction, and Operations
“SAP ERP helped us establish a single HR master database across a diverse global workforce. This also integrated with other systems at L&T, resulting in operational efficiency and optimizing our employee information.” Vipin Shukla, Executive Vice President – Corporate Governance & Shared Services, Larsen & Toubro
Global Projects, Worldwide Workforce
Larsen & Toubro (L&T) is a multinational technology, engineering, and construction company with many business units and major projects in 30 countries. Whether it is building a theme park or a nuclear power plant, L&T can virtually handle any job. Behind these massive operations are more than 60,000 employees representing multiple locations, job grades, and work schedules. Managing...