The Pleasanton, California-based software firm is calling on a slew of service companies to help it launch an outsourcing program for customers.
The PeopleSoft Certified Outsourcing Partner program is managed by PeopleSoft's professional services group. The program calls for PeopleSoft to provide the software and the various partners to provide the business expertise for different markets.
According to John Haworth, director of PeopleSoft's outsourcing strategy, the partners are to provide a range of services such as application management, business process outsourcing, or provide application service. The partners are to also offer industry-specific outsourcing for software implementation and management.
PeopleSoft is limiting participation in the program to IT service companies who have a proficiency in PeopleSoft software products. PeopleSoft will jointly service the customers with its partners and form joint marketing and sales efforts.
PeopleSoft's outsourcing strategy is similar to market leader SAP's program. SAP is also forming partnerships with others to provide the service, such as AT&T's Customer Care division for human resources outsourcing. For its program, SAP is providing the software and letting the partners handle the service side of the program.
The strategy also removes a lot of the risk from the enterprise resource planning vendors and a lot of the expense of offering such programs. Outsourcing is becoming a necessary service for the software companies to offer but it is not a huge revenue stream for them. By turning over the bulk of the duties to service companies who specialize in this field, the enterprise resource planning vendors are free to concentrate on more revenue generating ventures.