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Lloyds TSB banks on Xansa for HR
More offshore

By Jo Best

Published: Thursday 10 August 2006

IT services company Xansa has signed a multimillion pound, five-year deal to provide HR outsourcing services to Lloyds TSB.

Around 150 staff in Xansa's Indian facilities will provide Lloyds TSB's HR services, including administration, recruitment and taking over existing helpdesks for training, advice, guidance and general queries

UK staff will now be able to concentrate on face-to-face support, policy guidance and other specialist HR services to employees and line managers, according to the company.

Ovum analyst Phil Codling said in a research note that the business process outsourcing (BPO) deal was "significant".

"Firstly, it marks Xansa's entry into human resources outsourcing. Previously, the company's HR interests had encompassed payroll (which has been a natural extension of its finance and accounting BPO engagements on accounts such as BT, MyTravel and the NHS shared services initiative) and its small IT staffing operation.

"But the company has made clear its intentions to seek out opportunities that encompass a broader range of HR functions, using its usual emphasis on offshore delivery where possible," he said.

Xansa already has other outsourcing deals with the bank which cover some back office and IT work. TSB also has outsourcing deals in place with Fujitsu which manages some of its IT and IBM, which runs its voice and data network.