Hewitt's hurdle: Growing HR outsourcing biz; Aims to rule 'end-to-end' market with Exult deal.(News)

Crain's Chicago Business, September, 2004 by Singh, Shruti Date

Byline: SHRUTI DATE SINGH A battle is looming between the 1 million people who work in U.S. corporate human resources offices and the outside consultants who want to take over those functions. Hewitt Associates Inc. of Lincolnshire, long a benefits specialist, is betting it can take a big chunk of a relatively new business: outsourcing clients' entire human resources offices.

But it's a strategy that's not without risk. The company agreed to acquire a leader in HR outsourcing, Exult Inc. of Irvine, Calif., for $691 million earlier this year. When the deal closes, expected Sept. 30, Hewitt will leap to first from ninth in the "full-service'' HR outsourcing world with 35% of the market, according to industry researcher Everest Group of Dallas. Rivals...

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