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TWST: Give us an idea of your coverage in the human capital management
space.
Mr. Van Fleet: Our coverage area includes those companies that provide
full outsourcing services such as Hewitt Associates (HEW) as well as
niche providers of human resource business process outsourcing (HR BPO)
services such as TALX Corporation (TALX). We also cover the professional
employment organizations (PEOs) Administaff (ASF) and Gevity HR (GVHR).
We monitor other industry players such as Automatic Data Processing
(ADP), Ceridian (CEN), and Paychex (PAYX). TWST: Let's start with the outsourcing area. What's going on in that
space at this point?
Mr. Van Fleet: We continue to view HR outsourcing as an attractive and
growing market overall. We believe employer interest in examining ways
to improve services yet reduce costs continues to be high, particularly
in the large employer market segment. However, it's safe to say
employers are being more methodical in terms of examining the
cost/benefit relationship when it comes to looking at broader HR BPO
engagements. We've definitely seen sales cycles lengthening and a
general slowdown in terms of the number of deals getting done.
Tickers included in this excerpt: ADP, ASF, CEN, GVHR, HEW, HRBPO, PAYX, PEO, TALX
For more information call (212) 952 7433. The
Wall Street Transcript does not endorse any of the comments made by interviewees, and does
not make stock recommendations.
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