£12.5m double deal gives Exult outsourcing edge

Exult has signed a further two deals to provide HR services, boosting its
presence in the outsourcing market.

The provider, which last month signed a £370m five-year contract to take on
BP Amoco’s administrative HR functions, will handle personnel services for car
parts firm Tenneco Automotive and packing company Pactiv. The combined cost of
the deals is $20m (£12.5m).

The US-based organisations have 24,000 and 17,000 employees respectively and
a combined turnover of $5.4bn (£3.4bn).

Under the three-year deal with Pactiv, Exult will take over the company’s
client service centre.

It will use the site to provide HR services to BP Amoco and future clients.

Exult is building two service centres in the UK in the wake of the BP Amoco
deal, its first major HR outsourcing contract.

David Cook, Europe, Middle East and Africa leader of PricewaterhouseCoopers
HR outsourcing division, said interest in HR services had grown significantly
in the past two months.

But he said the HR industry does not yet understand how outsourcing HR will
work.

"They think of IT outsourcing, where companies drop in and take over
the entire function. HR is not like that," he said.

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