PeopleSoft to Offer Outsourcing Services

PeopleSoft (Pleasanton, CA) has announced that it will form a new business unit that will offer outsourcing enterprise applications. The division will reportedly embrace alliances with existing outsourcers to provide hardware, software and network infrastructure as well as business processes like accounts receivable. "This is beneficial for smaller companies who don't want to invest in infrastructure and technical talents," said John Haworth, PeopleSoft's director of outsourcing strategy, "as well as large companies who have high displaceable costs and year 2000 problems." Hurwitz Group

(Framingham, MA) analyst Josh Greenbaum says that outsourcing could be the way to go for organizations burdened by controlling their own applications and business processes. "There is big pressure from the customer base to cut costs and eliminate a lot of the problems related to complex implementations," according to Greenbaum. The program will be officially unveiled in the second quarter of this year.