Paula Oxner
Genesys
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Recent Genesys Research Evaluates Business Process Outsourcing Request for Proposal Process

Study Cites Payroll as Second Largest Outsourced Business Process

METHUEN, Mass. (June 16, 2004) - - Genesys, a provider of outsourcing services and software for human resources (HR) management, payroll, benefits, self-service, learning, and performance management, today announced the results of a research report that Genesys co-sponsored with Nova Amber, LLC and Outsourcing Central entitled "Understanding the RFP Process for Companies Leveraging Business Process Outsourcing." Major findings from this research reveal an increase in Business Process Outsourcing (BPO) and cite information technology (57%) and payroll (44%) as the leading outsourced business processes.

According to analysts, the outsourced 2004 U.S. human capital-related services market is $24 billion, which is projected to grow 8-12% over the next five years.

Genesys President Lawrence J. Munini said, "BPO is about making a company more efficient and profitable. Given how cautious business leaders are due to economic times and the positive impact that BPO has on a company's bottom line, the analysts projected increase and that revealed in the research is not surprising."

The study queried users of business process outsourcing on their outsourcer selection request for proposal (RFP) process and examined the use of support organizations in developing and evaluating RFP responses, RFP defined service level agreement metrics, service provider evaluation criteria and more.

Additional findings of the study reveal that:

• BPO is not purely an IT centric activity. Payroll, benefits management, contact centers, and many more processes are increasingly being deemed non-core processes and being outsourced.
  
  
• In addition to information technology (57%) and payroll (44%), the other most frequently cited outsourced processes include: benefits management (37%) and human resources (29%).
  
  
• Business objectives for BPO include: improve company focus (68%), reduce total operating costs (67%) and resources not available internally (46%).
  
  
• There is a rising trend in BPO managers or management teams throughout all industries. 63% indicated that they have an outsourcing relationship manager or team within their organization.
  
  
• Companies of all sizes are increasingly taking advantage of the benefits of outsourcing non-core functions.

Munini added, "Business process outsourcing involves more than just turning over non-core business processes to a third party supplier. BPO is a strategic business move, providing companies of all sizes an opportunity to directly impact their bottom line, focus on core competencies and obtain a competitive advantage within their vertical market. As such, it is recommended that companies use due diligence in partnering with a BPO vendor."

When selecting a vendor, survey respondents indicated that 68% have developed a RFP when evaluating outsourcing options and, the longer the firm had been outsourcing business processes, the more likely they were to develop RFPs. It was also noted that a company may look for an outsourcing provider who can support all of the processes they are considering outsourcing or they may take a best-of-breed approach and review outsourcers that specialize in each individual process to be outsourced.

"For some organizations, implementing a RFP is the first step in placing parameters around an outsourcing agreement," commented Munini. "The RFP can serve as an extremely important tool for companies and vendors to define their exact requirements and commitments. As the study notes, however, there is no right or wrong method of executing a BPO strategy. The methodology used should be based on what works best for meeting the business objectives of the firm looking to outsource."

To download a complete copy of the 27 page study, click here.

More About Genesys

Founded in 1981, Genesys is a proven Human Capital Management leader, providing solutions that transform the workplace and accelerate growth. The Company's web-based suite, PeopleComeFirst(tm), streamlines human resources and benefits administration, payroll processing, self-service, competency-based learning management and performance management. Implemented as either HRO (human resources outsourcing) services or as licensed software, PeopleComeFirst is also available to third party service providers through the HRO Partner Program.

A trusted advisor committed to superior customer service, Genesys provides unprecedented choice, flexibility, and satisfaction to its clients. For more information, visit www.genesysHCM.com or call 800-580-5450.

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