Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Parts of the transactional processes will be transferred to and delivered by an external business process outsourcing (BPO) service provider, Capgemini. The ambition is to utilize Sandvik’s common resources better and to develop a more efficient finance organization. As a result, Sandvik will adopt more flexible and scalable processes and maintain consistent quality and strong internal financial control.
“We need to be flexible and scalable to position ourselves for future growth. We are pleased to announce that Sandvik has signed a 5-year contract with Capgemini to handle the transactional finance rule-based and repeatable processes which will enable us instead to focus on crucial business support”, says Sandvik’s Chief Financial Officer, Emil Nilsson.
The new model will be implemented during 2013-2015 in 29 countries and involves all Sandvik’s Business Areas.
“As a consequence, it is likely there will be redundancies. Where, and how many, is too early to say. The numbers of employees being affected directly due to outsourcing depends on how these changes will be implemented in each country. The changes will be discussed in accordance with our transparent ways of working together with the employee representatives”, says CFO Emil Nilsson.
Stockholm 11th April 2013
