Zalaris has signed a new contract with Archdiocese Freiburg in Q4/18, servicing approximately 30,000 payroll transactions per month using SAP Software. The contract is one out of nine new contracts and renewals in Germany throughout 2018, with a total value of NOK 103 million.
The activity level in Central Europe has increased lately and Zalaris has signed multiple contracts in Germany in 2018, with two new contracts signed in the second half of 2018. In October, Zalaris signed with the Archdiocese Freiburg, in cooperation with SAP as a general contractor.
“The increased activity has materialized in new contracts after the summer. We are happy to see the markets recognition of the new Zalaris brand in Germany,” said Harald Goetsch,Executive Vice President for Zalaris in Central Europe.
The nine new contracts and renewals have a revenue impact of approximately NOK 22 million on an annual basis. In Q3/18, Zalaris signed a new contract with the Protestant Foundation Neuerkerode in Germany, transferring the complete ERP system to a SAP S/4 Hana system and to SAP HCM in 2019.
Public sector important
In Q2 and Q3, Zalaris won contracts with three states in Germany: Hesse; Rhineland-Palatinate; and, North Rhine-Westphalia. For one of the states, Zalaris will serve as an exclusive partner, not only in the expansion of the SAP system landscape, but also for all upcoming projects in a period over three years.
“Adding to our existing business in the public sector in Germany, we will now deliver services for approximately one million payroll transactions more each month. We are proud to expand our services within the German public sector, which gives long-term stability both for the sector and Zalaris,” said Goetsch.
The highest share of new customers are businesses concentrated in Germany, but Zalaris Germany is starting to see higher demand for multi-country services. German businesses with international reach want solutions served by an international provider with a broad set of HR services, such as Zalaris.
“We have a new value proposition to the market, providing services across Europe. Zalaris’ market recognition and branding in Germany are up and running, and we are working to reach more businesses with our solutions,” Goetsch said.
“This is an example of how great customers continue to renew from Zalaris due to the value that we can deliver with our delivery model and competent local resources. Long-term contracts like this give predictability of work and great development opportunities for our employees. This has a positive effect on revenue development and contributes to Zalaris’ presence in the German public and non-profit sector. With about 60% of our consulting revenue having a recurring long term nature we have a robust and resilient revenue stream that allows us to grow in a controlled manner”, added Goetsch.
Several of the new customers have signed contracts up to five years with possibilities to extend and expand. New customers and renewals are listed below:
- Partnering with SAP to implement HCM for Archdiocese Freiburg
- ERP system conversion at the Protestant Foundation Neuerkerode
- S/4 HANA finance implementation for several foundations in Freiburg
- S/4 HANA transition for Caritas in Germany
- The German Red Cross Blood Donation Service relies on SAP SuccessFactors
- Exclusive SAP services contract with German state Rhineland-Palatinate
- Leading German banks take up partnerships
- Kuraray Europe implements SAP and BPO services
- Carve-out project for BPO for an energy provider in Hamburg GmbH
Zalaris is certified as a SAP Business Process Outsourcing (BPO) Partner and is a leading SAP Human Capital Management (HCM) and SuccessFactors consulting partner. Founded in 2000, Zalaris today operates in Denmark, Estonia, Finland, India, Latvia, Lithuania, Norway, Poland and Sweden, including local-language service centers with extensive expertise in HR-related laws and regulations.