Starbucks has terminated its HRO contract with Convergys. In a March 13 analyst presentation, John Gibson, president of Convergys’
employee care business, announced that the two companies had mutually agreed to
terminate the contract because of “Starbucks’ shifting priorities to focus on
short-term initiatives unrelated to HR management.”
Gibson’s presentation cites a quote attributed to Starbucks saying, “The
decision to discontinue the contract was made based on the changing needs of the
business and in no way reflects on the quality of the work Convergys has done
for Starbucks.”
Starbucks had signed the multi-year HRO agreement with Convergys in July.
Under the deal, the Cincinnati-based HRO provider was to handle HR
administration and payroll for all of Starbucks’ employees in Canada and the
U.S. and take over benefits administration for the company’s Canadian workforce.
While terms of the deal were not disclosed, analysts estimated it to be valued
at $350 million to $400 million.
clipped from workforce.com
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