Products June 26, 2009

Towers Perrin Gives Up HR Outsourcing Biz to Hewlett Packard

June 26, 2009 (PLANSPONSOR.com) - Towers Perrin said it will reconsider how to provide employee benefit administrative services after selling its minority share of ExcellerateHRO, a benefits and human resources outsourcing company, to Hewlett-Packard Co., Business Insurance reports.
Reported by

Towers Perrin and EDS Corp. formed ExcellerateHRO in 2005 after EDS’ purchase of Towers Perrin’s benefits outsourcing unit – Administration Solutions, but Hewlett-Packard acquired EDS last year, also acquiring EDS’ 85% interest in ExcellerateHRO. After being approached by Hewlett-Packard, Towers Perrin this month sold its minority share of the business, according to Business Insurance.

“HP determined it was in its best interest to have exclusive ownership of ExcellerateHRO,” a spokesperson said. ExcellerateHRO serves more than 400 clients worldwide, providing benefits, payroll and other workforce administration services.

James Foreman, a managing director with Towers Perrin in Stamford, Connecticut said possible options for providing benefit administration services going forward include internally developing the capabilities, partnering with a company already in that business, or acquiring the needed capabilities.

«