Digitalisation as a strategic imperative
Today, the effectiveness of HR processes directly affects business sustainability, especially in large industrial holdings. A striking example of this is the story of Kazphosphate LLP, one of the largest manufacturers of phosphorus-containing products. Its products are supplied to markets in Europe, the CIS countries and Central Asia. The main production facilities are concentrated in the Zhambyl region.
In 2024–2025, the company successfully implemented a large-scale migration project from 1C: Salary and Personnel Management (SPM 2.5) version to the current version of SPM. The technical upgrade was followed by a more profound transformation: the company restructured its HR management processes, increased the transparency of calculations, and strengthened employee trust.
ALGARYTM acted as the technological partner for the project.
The project covered all key branches of Kazphosphate: the mineral fertilizer plant, the mining and processing complex, the railway transport complex, the Stepnogorsk chemical plant, and the headquarters in Almaty and Taraz. Digitalization also affected Kazphosphate business management and KAZ Chemicals Trading House.
Why transition became a necessity
At the end of 2024, the company launched a large-scale project for the digital transformation of human resources management. A distinctive feature of the implementation was that, at the start, there was no unified and formalized methodology for conducting business processes, and there was no uniformity in working with the 1C: SPM system in different business units. This meant that each site kept records in its own way, which complicated data integration, the development of a common logic, and further automation. The necessity of developing and implementing common rules and creating a unified information system became the challenge of the project.
One of the key tasks was to transition from the 1C: Salary and Personnel Management (SPM 2.5) configuration to the modern version of the corporate version 3.1. Support for version 2.0 will be discontinued in the near future, which creates risks for the smooth operation of the enterprise.
According to Gulzada Tusupbekova, head of the compensation department, benefits and standardization of the personnel department of Kazphosphate, the decision to switch was dictated not so much by a desire for innovation as by an objective necessity. The SPM 2.5 version was no longer supported by the developer: there was no technical support, legislative changes were not updated, and the risks of errors in payroll and reporting calculations were growing every month. For a company with dozens of divisions, thousands of employees, and a complex payroll structure, this was a signal to take action.
However, instead of viewing transition as a necessary measure, Kazphosphate turned it into an opportunity. The goal was not simply to ‘move’ to a new platform, but to standardize processes, reduce manual labour and integrate the HR system with the corporate SAP ERP platform.
Key success factor is a choice of a right partner
One of the most important decisions in this project was the selection of a contractor. The Kazphosphate team approached the selection process systematically: in the first stage, a long list of companies with proven experience in implementing ERP systems in large manufacturing holdings was compiled. This presented a dilemma: the Kazakh market for system integrators is narrow, and Russian players with the necessary expertise often do not have a legal presence in Kazakhstan, which entails additional tax costs (in particular, VAT).
ALGARYTM, a company with an office in Astana Hub and experience in implementing similar projects in different countries, was selected as the contractor. The decision was influenced by the company's compliance with the requirements and the team's demonstrated willingness to thoroughly review Kazphosphate's documentation, including aspects of working time accounting and bonus schemes.
How the transition went: from analysis to launch
The work on the project was divided into the following stages:
1. Audit of the old system: ALGARYTM specialists conducted research and analysis of business processes, prepared a data transfer plan and uniform regulations. Duplicate data, errors in reference books, and incorrect vacation balances were identified.
2. Test transfer and reconciliation: Transfer of information from different branches to a single database, system configuration, and adaptation to industry specifics. Key calculations (salaries, sick leave, taxes, vacation time) were checked in parallel in two systems.
3. Decision-making on the methodology for forming uniform rules for personnel and payroll accounting for a unified approach in all business units of the enterprise.
4. User training and support: an internal “first line of support” was created from ALGARYTM specialists. They not only solved technical issues, but also trained employees in the logic of the new system.
Particular attention was paid to user adaptation. To reduce resistance to change, teams were divided by business unit, with each support specialist immersing themselves deeply in the processes of a specific branch. This accelerated implementation and improved the quality of feedback.
Business effects: what Kazphosphate got
— Complete accuracy of payroll calculations and reporting — zero disruptions when transitioning to the new platform.
— Reduction of manual labor through the standardization of accrual types and automation of routine operations.
— Flexible configuration — the system now adapts to real working conditions: complex schedules, additional payments, bonuses.
— Integration with SAP — a unified information space for all company departments.
— Increased transparency for employees — clear and accurate payment sheets, increased trust in HR processes.
— Formation of an internal culture of digital maturity — thanks to training and support, users mastered new processes, and the transition went smoothly and without resistance.
“For us, this project is a step towards building a common digital HR management framework that meets modern business and legislative requirements. We would like to thank the ALGARYTM team for their work, and we would like to highlight the organization of the modeling and adaptation processes for the new extended schedule calculation,” said Kairat Bolatov, HR Director at Kazphosphate .
“The complexity of the project lay in the scale and diversity of business processes at different sites. But it is precisely such tasks that allow us to fully realize the potential of digitalization and bring real savings in time and resources to the customer,” emphasized Yulia Gurkina, Executive Director of the ALGARYTM group.
What is important to be taken into consideration when planning similar projects
Kazphosphate's experience offers several practical recommendations:
— Don't skimp on preparation. Check the data in the old system in advance — errors won't disappear on their own, they will be transferred to the new platform.
— Plan for parallel operation for at least 2–3 months. This is insurance against critical errors.
— Appoint an internal coordinator with authority and in-depth knowledge of the processes. Without a “project leader” from the business side, the risk of failure increases dramatically.
— Involve the HR team as much as possible as a key customer.
— Assemble a professional internal IT team. This ensures that knowledge and control remain within the company.
— Invest in user training and support. Technology works when people know how to use it and want to use it.
Results and further steps
The new system integrates the company's HR and payroll functions, brings together the work of more than 80 users, and allows for the unified accounting of more than 3,500 employees.
The implementation of the corporate version 3.1 has enabled Kazphosphate to eliminate the risk of work interruption due to the discontinuation of support for the old software, reduce maintenance costs, speed up calculations and reporting, and ensure compliance with legal requirements. For the company, this is an important step towards creating a unified information system that has increased transparency and efficiency.
In an environment where human capital is the main asset of an industrial enterprise, such initiatives directly affect operational efficiency, employer reputation, and overall business sustainability.
In the future, the company plans to implement solutions for automating occupational safety tasks and developing HR analytics.