Successful insourcing and implementation of salary functions in Copenhagen Municipality, Shared Service Center

Denmark's largest work place gets new salary system

Denmark's largest work place receives a new salary system.


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Jakob Blicher-Hansen

Partner - Infrastructure, Government & Energy

KPMG in Denmark


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Denmark's largest work place receives a new salary system

Denmark's largest work place receives a new salary system

Koncernservice (KS) is Copenhagen Municipality's own IT and administration Shared Service Center.

KS solves administrative tasks for the municipality's seven departments within IT, finance as well as staff and salary. Furthermore, KS solves an array of tasks to support modernisation and streamlining of the municipality. With a staff of approximately 900, KS caters to the 45,000 employees of Copenhagen Municipality, which makes it Denmark's largest work place.
KS is currently overseeing several significant transformation programmes including the Wage Payment Programme, which entails converting to a new SAP-based salary system and insourcing of the municipality's salary function from its previous external BPO supplier (KMD).

The sheer number of employees – in combination with the 7 separate administrative divisions – calls for total salary payments of significant volume and with a large and complex spectrum of work processes behind it. This reflects the strategic importance for the municipality to ensure successful implementation and insourcing. It has been a critical parameter to ensure the continuation of correct and timely wage payment to the employees of the municipality.


Insourcing and establishment of a new salary function 

Preparing for the return of the full salary administration process to the municipality, KS has had to re-establish its organization within a short period of time. The re-establishment has furthermore been closely related to the conversion to a new salary system. This as the new setup has changed the fundamental prerequisites with respect to handling administrative salary tasks. 

During a year KPMG assisted KS with programme and project management, setting up the new salary organization by 1. April 2016, at the point of launch of the new salary system. Furthermore, KPMG was responsible for the transition related to insourcing of the salary function itself to KS from KMD.

In short, the focal point of KPMG's assignment was to prepare the organization to handle new operational tasks related to salary administration. This included e.g. mapping of as-is and to-be processes, build-up of competence and training of employees, data conversion, execution of firm consignment, practical management of consignment of employees and processes, preparation of IT systems, support setup, communication, as well as change management were involved.

"KPMG proved itself adaptable to our needs, maintains a high level of enthusiasm, understands our challenges and has time and time again delivered work of the highest calibre" reports Trine Sandfuss, Wage Payment Programme responsible in Copenhagen Municipality.


The clear choice
Managing and being responsibility for the overall project – including management of a team of the client's internal project managers – KPMG ensured planning, execution of activities, streamlining, supplier management, and consecutive development of management reporting related to the programme and the project's status.

About the collaboration and KPMG's role in the programme, KPMG Director Jakob Kristoffersen elaborates: "With KPMG's in-depth knowledge and experience with supplier and vendor management, organizational transformation, and system implementation – combined with our deep insights in salary administration mechanisms in both Copenhagen Municipality and in the Public Sector in general – we were the clear choice as a collaborative partner who made a significant difference".

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