Rolls-Royce Case Study

The national calibration and manufacturing support contract competed by Rolls-Royce Corporate (UK) was won in December 2003. The programme required QinetiQ to switch on an organisation-wide outsourcing programme from the outset. This involved taking over the on site activities at Derby, Bristol, Ansty, Hillington, East Kilbride and Sunderland: this involved a total of nearly 50 staff on day one. Service hand-over was achieved within the 3-month transition phase defined in the contract and was carefully monitored at the initial weekly and then monthly formal review meetings with the customer.

The Rolls-Royce contract followed a slightly novel staff transfer route, with staff opting to enter into individual Compromise Agreements with Rolls-Royce and being re-employed by QinetiQ on day one of the contract. We played a proactive role in these negotiations and managed to retain more than 80% of the targeted workforce. Additional local recruitment satisfied all outstanding vacancies within 4 months, with no loss of service level to the customer.

Following the successful start of the continual improvement phase of the programme, Rolls-Royce has broadened the contract to include additional locations and on-site production support functions. Having demonstrated the value of the out-sourcing strategy in this way, we are actively working with Rolls-Royce to roll-out the programme to its overseas operations.