CORRECTING and REPLACING Despite Election-Year Politics, Business Process Outsourcing Gains Mainstream Corporate Acceptance, According to Capgemini/IDC Survey.

Business Editors

CORRECTION...by Capgemini

NEW YORK--(BUSINESS WIRE)--April 21, 2004

In BW5729 issued April 21, 2004: First graph, second sentence of release should read: According to a Capgemini/IDC pulse survey of more than 200 participants...(sted According to a Capgemini/IDC pulse survey of more than 150 participants...).

The corrected release reads:

DESPITE ELECTION-YEAR POLITICS, BUSINESS PROCESS OUTSOURCING GAINS MAINSTREAM CORPORATE ACCEPTANCE, ACCORDING TO CAPGEMINI/IDC SURVEY

Human Resource and Finance & Accounting Outsourcing Expected To Eclipse IT Outsourcing Over Next Five Years

As businesses move beyond cost reduction and toward a growth agenda in 2004, IDC, the premier global market intelligence and advisory firm in the information technology and telecommunications industries, and Capgemini US LLC, a global leader in consulting, technology and outsourcing, have found that business process outsourcing (BPO) is increasingly enabling corporate strategy. According to a Capgemini/IDC pulse survey of more than 200 participants attending the IDC Outsourcing Forum yesterday, even though six in ten (59%) said the current US political and regulatory debate over offshore outsourcing has had some impact on their company's long-term interest in BPO, nearly three-quarters of respondents (71%) indicate they have already outsourced some of their IT function. In addition, almost one-third (31%) of respondents are involved in outsourcing a portion of their human resources with one-quarter (24%) already outsourcing part of their finance & accounting (F&A).

The survey also found that over the next five years, IT outsourcing will slip to the third most popular business function outsourced, behind HR outsourcing and F&A outsourcing, but still in front of global procurement and customer care outsourcing.

"The survey illustrates that while companies are still beginning the outsourcing journey looking for cost savings, they increasingly turn to BPO providers who have the ability to offer transformational services plus operate capability," said Mike Thomas, Capgemini BPO leader, North America. "As BPO continues to gain traction in the boardroom, true collaboration is required between companies and service providers in order to realize the transformation and cost reduction objectives of the program."

The conference also featured an address by Katrina Menzigian, IDC vice president of BPO services research, who shared her views on key criteria companies should consider when choosing a BPO partner. Menzigian underscored the importance of making the right choice upfront in the selection of a BPO provider and how that decision "will directly influence the type of outsourced solution the company adopts, the nature of the relationship between the two organizations, and even the long-term viability of the contract signed today."

The IDC Outsourcing Forum: Improving Corporate Effectiveness Through Results-Driven BPO conference was designed to help enterprise decision-makers and senior executives answer key questions about BPO by cutting through market hype. End-user case studies were featured (including Hydro One and Capgemini on F&A Outsourcing), providing attendees with practical information that will save time and money. IDC, along with partners TPI and Milbank, shared insight from their extensive work in the BPO area, delving into specific functional segments, such as HR, customer care, procurement and F&A, as well as more "macro" BPO issues such as offshore sourcing and vendor management strategies. For complete survey results visit www.us.capgemini.com/outsourcing. For more information on IDC conference, visit www.idc.com.

"The survey findings reinforce IDC's market research which shows that as organizations explore BPO as a strategic option for improving business performance, they often face the challenge of building a shared understanding of BPO among key decision-makers and constituents," said Menzigian. "Whether it is overcoming risk concerns or dealing with compliance with Sarbanes-Oxley regulations, building a strong business case for BPO has never been more important."

Other survey highlights include:

-- Nearly one-quarter (22%) of respondents were from "product"

industries (energy, automotive, retail, manufacturing) and

another two in ten (20%) were from "service industries

(telecom, media, facilities), while less than one in eight

hailed from financial services (11%) or health/life sciences

(11%)

-- Twice as many respondents said the "ability to offer

transformational services plus operating capability (46%) was

the most important selection criteria in choosing a BPO

provider, compared to only 22% who said "lowest cost

solution."

-- The top four drivers for a company deciding to use BPO in

their corporate strategy today are, in order of importance:

save money, implementation of best practices; deliver internal

value & shareholder value through competitive advantage; and

focus on core competencies.

-- Nearly one-third (31%) said risk concerns were the main

impediment preventing an organization from undertaking a BPO

initiative, followed by three in ten (28%) who mentioned

internal political difficulties, and one-quarter (24%) who

said their organization's culture is adverse to outsourcing

-- Half of all surveyed (51%) said Sarbanes-Oxley had no impact

one way or the other on their organization's F&A outsourcing

strategy, while one-third (33%) said it had a positive impact

for compliance

-- Four in ten (40%) indicated "the ability to ensure process

controls are implemented and enforced" is the most important

F&A capability of a BPO service provider, compared to only two

in ten (20%) who point to the ability to provide low-cost

transaction processing.

About IDC

IDC is the premier global market intelligence and advisory firm in the information technology and telecommunications industries. We analyze and predict technology trends so that our clients can make strategic, fact-based decisions on IT purchases and business strategy. Over 700 IDC analysts in 50 countries provide local expertise and insights on technology markets, and our management team is comprised of experienced and respected industry luminaries. Business executives and IT managers have relied for 40 years on our advice to make decisions that contribute to the success of their organizations. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. Additional information can be found at www.idc.com

About Capgemini

Capgemini, one of the world's foremost providers of Consulting, Technology and Outsourcing services, has a unique way of working with its clients, which it calls the Collaborative Business Experience. Through commitment to mutual success and the achievement of tangible value, the company helps businesses implement growth strategies, leverage technology, and thrive through the power of collaboration. Known as Cap Gemini Ernst & Young until April 15, 2004, Capgemini employs approximately 48,000 people worldwide (55,000 including Transiciel) and reported 2003 global revenues of 5.754 billion euros. More information about individual service lines, offices and research is available at www.capgemini.com