There is certainly nothing rotten in Denmark as far as Accenture is concerned.

The consultancy and outsourcing firm recently signed a $43 million contract over 68 months to provide payroll and basic human resources services to Copenhagen on an outsourced basis.

The contract includes an option for the City to extend the agreement an additional 12 months, which could increase the contract value to $49 million.

Remember, in the prior issue of Outsourcing Essentials, we pointed out that nearly 90 percent of 150 government executives in 23 governments in Asia, Europe, North America and South America polled by Accenture said they outsource activities that are “important or absolutely critical” to their mission of citizen service delivery.

To help administer payroll and basic human resources services for the City, Accenture will develop a new human resources system incorporating self-service and automated processes that will enable city managers and administrators to access their records, change policies and conduct other routine human resources transactions. Accenture also will reengineer the City’s payroll and pensions processes and organization to help them increase the efficiency of these functions.

Under the terms of the agreement, Accenture will provide the services through Accenture HR Services. Approximately 100 of the City’s employees will be offered employment with Accenture HR Services.

“ With a new HR system and an HR organization that is more performance- and service-oriented, the City of Copenhagen should be able to reduce administrative costs while providing its employees with a higher level of service,” said David Clinton, CEO of Accenture HR Services.