“The human resources department has never been a priority,” says Doug
Shurtleff, the CEO of Exult
. Yet, if HR is not managed properly, it could result in
disorganization, as well as lower profitability.
Actually, HR is becoming increasingly complex. For example, there has been
a surge in global M&A, the flattening of corporate organization, and
increased speed of decision making. For the most part, many companies do not
have the in-house resources to manage HR effectively.
In light of this, the partners at the venture firm of General Atlantic saw
an opportunity. Why not create a company that provides outsourcing
solutions? The result was a company called Exult.
“Our focus is solely on the Global 500,” says Shurtleff. And the company is
not a niche provider; rather, Exult is a complete solution.
In all, the company has 18 components to its service offerings. They can be
summarized in the following categories:
- Total Compensation: Exult helps design total compensation strategies,
policies and budgets. These are based on extensive research. - Workforce Development: Exult will develop strategies to promote
organization effectiveness. This is done by setting performance goals
(which can be tracked), organizing corporate training, identifying and
defining key jobs, and the assessment of talent. - Workforce Deployment: Exult helps with recruiting, selecting job
candidates, communicating and negotiating job offers, background checks,
relocation and expatriate administration. - Employee Data Management: Exult handles data and records management, as
well as the organization of a company’s information technologies and
services.
A critical component to Exult’s services is its myHR technology. This is a
Web-based system that links employees with company information. Basically,
myHR is a personal employee portal. With it an employee has access to news,
pay, and performance evaluations. There is also the capability for
transactions, such as adding a dependent to a health plan.
In the past quarter, Exult generated $8.2 million in revenues, which was a
46 percent sequential increase. The losses were $13.8 million. The company
had an IPO this year and the cash balance is $140 million.
However, the revenues should accelerate. After all, the company focuses
exclusively on mega deals. By far, its biggest deal was struck in late
December 1999: a five-year, $600 million contract with BP Amoco. “It is
the biggest deal of its kind,” says Shurtleff.
The market for Exult is “huge,” according to Shurtleff. A recent study from
GartnerGroup/DataQuest projects that the global market for integrated HR
business process management services will grow at an annual compound rate of
88%, reaching $12 billion by 2003. And so far, Exult is the only company
that provides such services in a comprehensive way.
