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Oracle Launches "BPO Powered by Oracle" for HR Outsourcing Providers

Business process outsourcing (BPO) touches many enterprise activities, but one of today's hottest segments is Human Capital Management. To address this growth, Oracle recently launched a new program for BPO providers that offers both the Oracle E-Business Suite Human Resources Management System and the PeopleSoft Enterprise Human Capital Management applications.

Complete Process Management
BPO includes not just the outsourcing of IT management and software, but typically some administrative staff and process-management functions as well. "BPO Powered by Oracle" serves providers who offer varying mixes of outsourcing services, but who minimally provide tactical and procedural business process support.

Key business drivers for companies who choose to outsource HCM business processes include reduced administrative HR costs, lower capital expenses, and greater business flexibility. Industry-wide, the outsourcing of transactional HR activities such as payroll and benefits administration has generated cost reductions of up to 20 to 30 percent.

Competitive Advantage for BPO Providers
Oracle's new HCM outsourcing option may have an even bigger impact on BPO service providers themselves. "Having Oracle inside allows providers to reduce expenses, optimize profit margins, and most important of all, deliver better service. It's a huge competitive advantage." says Russell Handley, director of BPO product marketing. "In addition, Oracle's ease of integration and upgrade track record relieve the provider of having to focus resources on IT issues that may distract from achieving their competitive business goals.

One-Stop Shop
Oracle's advantages come from its complete, yet loosely coupled standards-based technology stack, which consists of industry leading HCM application suites and related components. "We're a one-stop shop for the best applications, applications servers, middleware, and database — it's simpler for the providers to do business with us," says Melanie Lougee, Director of BPO Product Strategy.

"Getting a full range of leading technology from a single vendor also means easier integrations and lower total cost of ownership when it comes to maintenance and upgrades, compared to the piecemeal alternatives from competitors who don't support open standards and can't offer a complete solution, she says.

"It is a lot more cost efficient for BPO providers to run Oracle or PeopleSoft than it is to rely on platforms that aren't based on standards, aren't very easy to integrate, and are consequently extremely expensive to implement and maintain — let alone upgrade," Handley adds. "When you look at all the costs that a provider has to consider when serving multiple customers, the flexibility, openness, and functional richness of the service delivery platform can make or break their business."

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