Channel 4 outsources HR in cost-cutting drive

Broadcaster Channel 4 has outsourced its HR services as part of a company-wide drive to cut costs.

Having already announced programme cuts, Channel 4, which is looking at an 18% drop in advertising revenues over the first half of 2009, has turned to its HR function.

Under a five-year deal, outsourcing provider Logica will run the broadcaster’s HR administration and payroll services. Logica will implement a new payroll application, integrating it with Channel 4’s existing system.

The new contract will also see the outsourcing firm manage approximately 25 of Channel 4’s transactional HR processes, such as joiners and leavers, employee changes and absence management.

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Earlier this week, Channel 4 was forced to defend executive salaries after MPs claimed they were “grossly excessive”.

Chief executive Andy Duncan said the salaries – where 80 of the 700 full-time staff earn more than £100,000 – were necessary to retain top talent.