Buck Consultants Survey Finds Successful HRO Anticipates New Role of Retained HR Staff

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Buck Consultants announced today the results of a national survey of U.S. organizations. According to the survey, to maximize the business value of human resources outsourcing (HRO), employers should plan ahead for the changed roles of retained HR staff.

Buck Consultants, an ACS company and one of the world’s leading human resource and benefits consulting firms, announced today the results of a national survey of U.S. organizations. According to the survey, to maximize the business value of human resources outsourcing (HRO), employers should plan ahead for the changed roles of retained HR staff.

In its survey “Retained HR After Outsourcing: Optimizing Performance,” conducted in the first quarter of 2006, Buck analyzed responses from 85 U.S. employers in a wide cross section of industries. The results showed that, after implementing HRO, retained HR staff becomes significantly more involved in consultative and decision support. What’s more, companies reporting the greatest success from HRO plan ahead for these new roles and invest more in training and change management.

“Business value, not just cost reduction, should be the objective of every HRO initiative,” said Bruce Barge, Ph.D., Managing Director of Buck’s HR Management practice. “Our survey shows that planning ahead for the changed roles of retained HR staff results in maximum business value.”

In the study, “high-performing organizations” are defined as those reporting “significant” or “very significant” increases in customer satisfaction and productivity improvements in HR service delivery as a result of HRO.

Among the results of Buck’s survey:

· High-performing organizations planned ahead 48% more often than other respondents for the new roles of retained HR staff.

· Overall, 54% considered the future role of retained HR staff in their outsourcing strategy. Only 13% waited until outsourcing was implemented before considering retained HR staffing issues.

· More than one-half of all respondents provided retained HR staff with consultative skills training, while 50% also provided business skills training. High performers were 39% more likely to have engaged in training efforts.

· After HRO, employers want the best and brightest for their retained HR staff. Nearly one-third recruited from outside their current staff, and retention bonuses are used selectively to keep existing staff during the transition.

The Buck survey also examined today’s HRO trends and possible future changes.

Thirty-eight percent of respondents currently outsource a significant part of their HR functions and another 21% have plans to outsource or are seriously considering HRO. Companies that outsource most often cite cost efficiencies (28%) and the ability to focus on strategic issues (24%) as the reasons for doing so.

The longer an organization has outsourced, the more likely it is to outsource multiple HR functions. Sixty percent of respondents who have outsourced for three or more years outsource between three to seven HR functions.

“As HRO services mature and successes are more widespread, organizations that currently outsource are willing to expand the scope of HRO,” said Barge. “In the future, we expect to see continued change in the structure and role of HR, as administrative tasks are largely automated.”

Whether or not they currently outsource, many respondents expect significant changes in their HR operations in the next few years:

· 88% will increase their use of technology to deliver transactional support

· 72% will increase strategic HR support

· 59% will increase global alignment of HR systems and processes

· 58% will increase consultative services to line managers

· 57% will increase decision support.

Buck Consultants, an ACS company, is a leader in human resource and benefits consulting with more than 1,500 professionals worldwide. Founded in 1916 to advise clients in establishing and funding some of the nation’s first public and private retirement programs, Buck is an innovator in the areas of retirement benefits, health and welfare programs, human resource management, compensation and employee communication. News and other information about Buck Consultants is available at http://www.buckconsultants.com. Buck is an independent subsidiary of Affiliated Computer Services, Inc.

ACS, a global FORTUNE 500 company with more than 55,000 people supporting client operations reaching nearly 100 countries, provides business process outsourcing and information technology solutions to world-class commercial and government clients. The Company's Class A common stock trades on the New York Stock Exchange under the symbol "ACS." ACS makes technology work. Visit ACS on the Internet at http://www.acs-inc.com.

The statements in this news release that do not directly relate to historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties, many of which are outside the Company's control. As such, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the Company’s prior filings with the Securities and Exchange Commission, including our most recent filing. ACS disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise.

Buck’s survey “Retained HR After Outsourcing: Optimizing Performance” is available to the media by contacting Ed Gadowski at (201) 902-2825. It is available to other interested parties for $50 from Buck’s Survey Department, 500 Plaza Drive, Secaucus, NJ, 07096-1533. Telephone (201) 553-6400. It can also be ordered online at http://www.bucksurveys.com.

Media Contact:

Ed Gadowski

Media Relations

Buck Consultants


This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: http://www.HRmarketer.com) on behalf of the company listed above.


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Edward Gadowski
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