One Year After Merger, Hewitt Associates Strengthens HR BPO Lead

LINCOLNSHIRE, Ill., Oct. 5--Xinhua-PRNewswire-AsiaNet/InfoQuest


Firm Redefines HR BPO Industry, Sparks Increased Industry Consolidation

One year after Hewitt Associates (NYSE: HEW), a global human resources

services firm, merged with Exult, Inc., it has strengthened its lead in the HR BPO industry, signing 14 new HR BPO clients and holding a 37 percent market share.*  The firm serves more than 300 companies with benefits outsourcing services and more than 30 companies with HR BPO services.Hewitt provides benefits outsourcing services to 19 million employees and HR BPO services to more than 800,000 employees.

Since the companies merged in October 2004, Hewitt has expanded its

industry lead by adding 14 HR BPO clients including Sun Microsystems, PepsiCo and Wachovia Corporation.  Continuing to build its momentum, the firm also began delivering HR BPO services for companies including Capgemini Energy LP and Duke Energy.
"HR BPO has hit the mainstream with Fortune 1000 companies recognizing HR outsourcing as an important strategy for business success," said Bryan Doyle,
president of HR outsourcing for Hewitt.  "We set out to redefine the industry with the most flexible and comprehensive solution.  Not only are we achieving our vision, we've been successful in extending our lead into specific industries, serving financial services, retail, technology and manufacturing organizations."

"Hewitt's merger with Exult elevated the firm to leadership status in the HR BPO market by bringing together both depth of HR expertise and BPO know-how," said Lisa Rowan, IDC's program manager for HR and Talent Management Services Research. "Hewitt is positioned well to capitalize on the fastest-growing segment of HR services, expected to grow to $16.5 billion in the U.S. by 2009."**

The HR BPO industry has also seen a rise in consolidation, with several BPO organizations and consulting firms joining together during the past year.

"HR BPO is not about IT.  It's about HR expertise and capabilities," said Doyle.  "In many ways, we believe our merger was a catalyst for increased industry consolidation as other companies worked to acquire the HR knowledge and expertise that Hewitt has.  Much of our success in HR BPO is due to the fact that HR has been -- and will continue to be -- our core business." Moving forward, Hewitt expects to build upon its industry lead, including continuing to expand its capabilities globally, serving clients in Europe, Canada and Asia Pacific.

About Hewitt Associates

With more than 60 years of experience, Hewitt Associates (NYSE: HEW) is the world's foremost provider of human resources outsourcing and consulting services. The firm consults with more than 2,300 companies and administers human resources, health care, payroll and retirement programs on behalf of more than 300 companies to millions of employees and retirees worldwide. Located in 35 countries, Hewitt employs approximately 20,000 associates. For more information, please visit www.hewitt.com .

* Source: Everest Research Institute, based on total contract value,

>10k employee, July 2005

** Source: IDC, U.S. HR BPO 2005 Vendor Analysis, September 2005

Contact:

Jennifer Frighetto

Tel: +1-847-442-7663

Email: [email protected]

Lindsay Bechtel

Tel: +1-847-442-7662

Email: [email protected]

SOURCE Hewitt Associates

--Distributed by AsiaNet (www.asianetnews.net)--


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