Cost Reductions and Improved Service are Essential, but ERP Issues Ultimately Drive HR Executives to Outsource, According to Everest Research Institute Findings.

NEW YORK & DALLAS -- HR Outsourcing Expert Michel Janssen Addresses Changing Buyer Expectations and Other HRO Issues at The Conference Board's Forum on Critical Human Resources Issues

Even though lower costs and improved services are requirements of HR outsourcing, complex technology issues, such as the need to install, support, upgrade or consolidate ERP (enterprise resource planning) software, is often the primary driver that motivates companies to outsource multiple HR functions, according to Michel Janssen, Managing Research Director, Everest Research Institute, in a presentation at The Conference Board's 2005 HR Leaders & Practitioners New Tough Issues Forum held in New York on October 27, 2005.

"Technology has emerged as the number one factor considered by today's buyer of HR outsourcing services," said Janssen, who presented findings from Everest Research Institute's quarterly in-depth analysis of the HRO marketplace. "Faced with a combination of aging IT systems and complex ERP issues, HR directors are using outsourcing to gain access to advanced technology platforms that give them the information and functionality they need, rather than take on the internal battle of buying or retrofitting the technology themselves."

In his presentation, Janssen compared shifting buyer expectations and their impact on supplier offerings. "Three years ago, it was all about scale and whether a supplier had the size and experience to take over various HR functions," Janssen said. "Today, it's about the supplier's operating platform and the applications it can support. In the future, as the market matures, we'll see scope and quality of service delivery driving the buying decision and emerging as the key differentiator among suppliers."

About Everest Research Institute

Everest Research Institute (www.everestresearchinstitute.com) serves as a central source of strategic intelligence, analysis and actionable insight for corporate buyers, service providers and investors in the global business process outsourcing and information technology outsourcing marketplace. The Institute is dedicated to providing the global outsourcing community with the information it needs to build highly productive outsourcing relationships and programs, focusing on the drivers that are continually reshaping the industry landscape and analyzing how they impact member organizations and the success of their outsourcing strategies. The Institute's distinguished Board of Advisors, all senior executives and thought leaders in global outsourcing, oversee the Institute's research agenda to ensure that it fully supports the business information needs of corporate buyers, service providers and investors.

Everest Research Institute members gain unique and highly personalized analytical and advisory services, not available elsewhere, including:

--Unlimited analyst access - In addition to a full-day strategic planning session for in-depth, face-to-face discussions, Everest analysts are available for ongoing consultation to address members' immediate issues and concerns. Such access is unprecedented in the industry, and gives members a distinct competitive advantage as they seek to take advantage of emerging opportunities, changing market conditions and unforeseen developments.

--Visionary research with actionable insight - Members receive in-depth reports on major outsourcing topics, supplemented by quarterly updates and monthly research notes on market-shaping events, including regulatory developments, technological advancements and emerging sources of risk and value. These forward-looking reports not only cover important trends and developments, but also project future scenarios and outcomes of outsourcing decisions made today. This comprehensive interpretation of data provides members with actionable insights to support decision-making.

--Wealth of knowledge and experience - Members benefit from the domain expertise and perspectives that come from Everest's direct involvement in structuring and negotiating more than 530 ITO and BPO transactions and more than 800 best practice case studies. Everest analysts have intimate knowledge of the strengths and weaknesses of service providers in different markets, processes, industries and geographies. They also have a first-hand understanding of how buyers approach the vendor selection process and, ultimately, of the factors essential to outsourcing success. In addition, the Institute has tapped multiple market sources and collected proprietary information to assemble the industry's most comprehensive database.

Everest Research Institute was established by the Everest Group, which provides strategic advisory services that help companies harness the power of outsourcing. Since its formation in 1991, Everest Group has served as business advisors for hundreds of IT and business process outsourcing transactions worldwide.