EquaTerra and Human Resource Executive Publish Results of Study on HR Transformation and the Role Outsourcing Plays as an Enabler of Reduced Costs and Improved Service Levels.

NEW YORK -- EquaTerra, a multi-national outsourcing and insourcing advisory firm, and Human Resource Executive(R) magazine, the premier publication focused on strategic issues in HR, today announced they have concluded a comprehensive study entitled, "Transforming HR: Realities, Futures and the Role of BPO." Results of the study - published in the May 16, 2005 edition of Human Resource Executive(R) magazine - are available by going to: http://www.hrexecutive.com, or sending an e-mail to: [e-mail]. Study results will also be examined in detail during an EquaTerra webcast on May 25, 2005. For further information, please contact: [e-mail].

The study, sponsored by Accenture HR Services and participated in by 589 qualified executive management and HR decision makers, was conducted to address three critical issues:

--How compelling and well understood is the concept of HR transformation?

--What steps are organizations undertaking to transform their HR organization?

--What is the real or perceived role and value of HR Outsourcing (HRO) in enabling HR transformation?

Said Stan Lepeak, Managing Director of Research for EquaTerra, "HR organizations are under increased pressure to simultaneously reduce costs and improve service levels and capabilities. This bifurcated goal is increasingly encapsulated in the vague yet alluring concept of 'HR transformation.' One increasingly-utilized element of this transformation pursuit is the outsourcing of HRIT and HR processes. The results of this study will help executive management and HR decision makers benchmark their current state against their peers, and gain insight into how to increase their likelihood of HR transformation success."

Key study findings include:

--Most respondents were generally satisfied with the current state of their HR organization; HR people and processes fared better than HRIT applications and systems

--59 percent of respondents identified a need for improvements to training and development (though more frequently in smaller organizations than large ones), while HRIT followed closely at 53 percent

--The majority of respondents have already undertaken efforts to transform HR via process improvement/business process re-engineering with self-service tools and upgrades to HRIT leading the way

--17 percent of respondents have pursued HRO, and 11 percent have pursued HRIT outsourcing

--The majority of respondents cited "lack of resources/too expensive" as a barrier to HR transformation, while 40 percent did not deem it as critical

--There was little consensus around the most effective means to enable HR change and transformation

--"Gain measurable HR cost savings" topped the list of compelling HR transformation benefits, followed very closely by "Improve HR efficiency" and "Improve business results/shareholder ROI", demonstrating a focus on actionable and beneficial results

The study found that organizations have undertaken many efforts and have many tools at their disposal to pursue HR transformation. Emphasis is shifting away from just more HRIT investments, and toward a greater focus on improved process performance and organizational competencies. There is a greater focus on improving capabilities in process areas that improve qualitative aspects of HR operations, such as recruiting, training/learning and employee development, above and beyond transaction processing automation and streamlining. Both IT and business process outsourcing can and will play a strong and growing role in enabling cost-effective HR transformation. Concluded Lepeak, "The emphasis for end-user organizations, however, must remain on investing adequate resources to develop the processes and gain the competencies required to determine under what circumstances outsourcing is right for them, and when it is, ensure that it is undertaken successfully."

About EquaTerra

EquaTerra, http://www.equaterra.com, a global outsourcing and insourcing advisory firm with over 140 advisors in North America, Europe and Asia Pacific, is focused solely on providing global corporations with advisory, research and outsourcing governance services that enable them to achieve service delivery excellence for their SG&A processes. EquaTerra's advisors average more than 20 years of industry, service provider and process experience with functional leadership in Finance & Accounting, Human Resources, Information Technology and Procurement, and have been involved in over 600 global business transformation, outsourcing and outsourcing governance projects.

For more information, please contact Lee Ann Moore at +1 713.669.9292; [e-mail]; http://www.equaterra.com.

About Human Resource Executive(R) magazine

Human Resource Executive(R), http://www.hrexecutive.com, magazine was established in 1987 and continues today as the premier publication focused on strategic issues in HR. Written primarily for vice presidents and directors of human resources, the magazine provides these key decision-makers with news, profiles of HR visionaries and success stories of human resource innovators. Stories cover all areas of human resource management, including personnel, benefits, training and development, HR information systems, relocation, retirement planning, workplace security, and healthcare. More than 75,000 HR decision-makers currently receive the publication, which is published 16 times a year.