Arvato Systems Malaysia Case Study

Arvato Systems Malaysia and activpayroll: 17 Years of Payroll Support Through Growth and Change

Client

Highlight

17 years of consistent payroll support

Industry

Technology

Regions

APAC

Solutions

Payroll, International Payments

41 → 210 Payslips

17 Year Partnership

<2 Days Payroll Process

Managing Payroll Through Business Growth and Change

Arvato Systems Malaysia, part of the Bertelsmann Group, is an international IT specialist providing digital transformation, cloud, infrastructure, SAP, data management and application services to clients worldwide.

When Chloe Gan joined Arvato Systems Malaysia in February 2009, payroll was being managed manually through Excel, with a freelance resource handling payroll submissions. As the only HR professional at the time, Chloe recognised that outsourcing payroll would provide a more structured approach and began reviewing local payroll providers.

After comparing different vendors, Arvato Systems Malaysia selected activpayroll, valuing the attention, service and ability to accommodate its requirements at the time. The partnership began in August 2009, when the payroll covered 41 payslips.
Throughout various stages of business growth and organisational change, activpayroll has remained a reliable partner, adapting to our evolving workforce and business needs.

For Chloe, the relationship has been defined by the team's professionalism, expertise and consultative approach: “I personally like the professionalism, the expertise and consultative approach provided by the team.”

Evolving Business Needs

The partnership has supported changes to Arvato Systems Malaysia's organisational structure and employee movements.

One example came when a sister company was establishing its own legal entity. Employees were initially managed under Arvato Systems Malaysia before their employee information and payroll data were transferred to the new entity once it was established. Payroll support helped facilitate this change.

The organisation has experienced various changes in business priorities and operating requirements over the course of the partnership. Despite these changes, the payroll process has continued to adapt to the organisation's requirements.

Finance reporting requirements have also been accommodated within the payroll process. Arvato Systems Malaysia's finance team has specific requirements for reconciliations, and activpayroll has provided reports in formats that reduce the need for the internal team to rework the information.

Keeping Payroll Reliable and Responsive

As the business has changed, the payroll relationship has also needed to accommodate different requirements and occasional last-minute changes.

Chloe highlighted the team's willingness to discuss reporting requirements and ad hoc changes, including situations where payroll needs to be amended at short notice following an employee resignation. She sees this flexibility as an important part of the relationship.

Responsiveness and attention to detail have also been important throughout the partnership. Chloe recalled an occasion when a member of the activpayroll team visited the Arvato Systems Malaysia office to provide additional support and discuss the situation in person.

She highlighted the team's willingness to work closely with Arvato Systems Malaysia when something requires attention, helping to find a practical way forward.

This practical, responsive approach has helped build trust over the course of the 17-year partnership.

Supporting Compliance and Audit Requirements

Compliance and reporting are important priorities for Arvato Systems Malaysia, which operates within ISO, ISMS and QMS requirements.

activpayroll supports the organisation with regulatory updates, documentation and data required during audit exercises. When auditors require specific payroll information, the team can provide the relevant documentation and data for review.

activpayroll's support and documentation have contributed positively to our payroll compliance and audit processes, helping us maintain a high standard of accuracy and consistency.

Giving HR More Time to Focus on the Business

Outsourcing payroll has reduced the amount of transactional work handled directly by the HR team. Managing payroll internally for a workforce of our size would require significant administrative effort and resources. With activpayroll managing the payroll process, her team focuses on checking and verifying the outputs, with the process taking less than two days.

This creates a clear division of responsibility. activpayroll produces the payroll reports, while the internal team checks and verifies the results. Chloe also highlighted the value of having a second set of eyes involved in the process rather than completing everything internally: “Payroll is important, but at least this part is taken care of by someone that we trust. Hence, we can focus on other things, which are also crucial to the business.”

The employee self-service portal further reduces routine payroll queries to HR, giving employees direct access to information and allowing the HR team to focus on other priorities.

Results

The long-standing payroll arrangement has provided continuity as Arvato Systems Malaysia's business model, operating structure and workforce have changed.

For the HR team, outsourcing provides a defined process in which activpayroll manages payroll preparation and reporting, while the internal team focuses on checking and verification. This reduces the amount of transactional work handled by HR and provides access to support when changes or additional information are required.

The partnership has also continued through technology changes, including the transition from EPE to iWowSoft and activ8 ePay in 2026. activ8 ePay was implemented in April 2026 without disruption.

A Partnership Built on Reliability and Trust

For Arvato Systems Malaysia, the value of a long-standing payroll relationship extends beyond processing payroll each month.

For Chloe, this provides confidence that payroll requirements will be handled by a team that understands the organisation and its needs. She also values the team's knowledge of payroll and employment matters, including their willingness to investigate questions around market practice when required. During a contract renewal, Arvato Systems Malaysia benchmarked other payroll providers before deciding to continue with activpayroll.

Looking ahead, we continue to explore opportunities to further enhance efficiency, automation, and reporting capabilities in support of our HR and payroll operations.
Chloe also sees potential value in using activpayroll's wider regional payroll knowledge to provide insight into developments and practices across different markets.

After 17 years, activpayroll continues to support Arvato Systems Malaysia's payroll requirements as the organisation evolves, providing continuity while allowing the HR team to focus on the wider needs of the business.

For Chloe, the strength of the relationship comes down to the trust that has developed over time:

Global Payroll

Overcome complexity and achieve compliance to ensure employees are paid on time, every time, no matter the location.

Payroll

Global Mobility

Enable your employees to work across borders, keeping up with ever-changing laws, tax regulations and employment law.

Mobility

Global HR

Utilise our HR services to support your compliance, HR projects and gain advisory support.

Human Resources