SAP Sets New Standards for Business Process Outsourcing

Unveils BPO Services Powered bySAP; Certified Outsourcing and Collaboration with Leading BPOProviders Enables Companies to Drive Growth and Innovation

NEWYORK, N.Y. – April 12, 2005 – Further delivering on its road map forbusiness process outsourcing (BPO), SAP AG (NYSE: SAP) today announceda new program that helps businesses execute a successful outsourcingstrategy. Under the BPO Services Powered by SAP program, SAP endorsesand actively supports the set up and ongoing operations of BPO deliveryplatforms in close collaboration with leading BPO providers, includingACS, ADP Inc., EDS and LogicaCMG, as initial program partners for theHuman Resources Outsourcing Segment. These platforms, which are basedupon the latest versions of SAPs best-in-class solutions and deployedin a cost-effective and standard way, enable companies to benefit fromprocess automation and innovation when outsourcing human resources orother administrative processes. The announcement was made inconjunction with HRO World, a leading human resources and outsourcingshow being held in New York, N.Y., April 12-14.

Companiesaround the globe are increasingly looking to outsource administrativebusiness functions, allowing them to focus more on their corecompetencies and to free up valuable resources to drive growth andinnovation. Compared to standard business process outsourcing, BPOServices Powered by SAP includes a unique combination of SAPslong-term viability as a partner and experience in providing innovativebusiness solutions with complementary services from leading BPOproviders. Together, these components provide exceptionally low risk,cut transition and operations costs and improve standardization ofquality business processes.

For Procter &Gamble, outsourcing parts of our human resources organization was astrategic move to further deploy state-of-the-art processes and relatedtechnology in order to better serve our internal customers, said LuigiPierleoni, HR director, Procter & Gamble. Also in BPO, thebest-practice business processes embedded in SAP technology make it akey differentiator for us today and in meeting the challenges oftomorrow.

SAPs services-oriented architecture,powered by the SAP NetWeaver platform, makes it easier for companiesto move non-core business processes outside the enterprise whileretaining full control of information and workflows in a seamless,tightly integrated fashion. Delivering on a vision forservices-oriented architecture, SAPs road map for BPO is designed toenable customers to benefit from better and more consistent businessprocess quality, lower overall cost and reduced risk related to BPOdeployment, transition and operations.

Fortune 2000companies are pursuing BPO as an opportunity to improve service levelsand reduce costs in their sales, general and administration processes,said Mark Hodges, chairman, EquaTerra. Enterprise technology is acritical enabler of BPO. SAP, a leading provider of business softwaresolutions, has a clear and articulate value proposition to provideBPO-ready solutions to leading outsourcing providers serving thisdynamic market.

Peter Bendor-Samuel, president ofThe Everest Group, added, Based on our research, clients areincreasingly demanding sophisticated BPO services, and businesssolutions such as those from SAP are setting new standards for theindustry by providing the right business process technologyfoundations.

BPO Services Powered by SAP Generates Support from Leading BPO Vendors
As the leading provider of business software solutions, SAP is a wellsought-after partner for leading BPO services providers. SAP iscurrently working closely with a growing number of companies for theirbusiness process expertise, SAP solution experience and qualityperformance on BPO projects. The dedicated services available to thesecompanies include up-to-date support and state-of-the art operationscompetence, solution delivery and management support. Within theframework of this specific program, each of these companies providesrespective expertise and services based on SAP solutions, and inparticular for Human Resources Outsourcing:

  • ACS offers a full range of global human resources BPO services
  • ADP offers global payroll and human resources BPO services to multi-national enterprises
  • EDS offers global human resources BPO services
  • LogicaCMG offers international human resources management including payroll BPO services to multi-national companies

We see an increasing need from our customers torespond to competitive pressure, globalization and business volatilityby re-aligning and focusing their organizations, said Leo Apotheker,member of the SAP Executive Board and president of Global FieldOperations, SAP AG. Companies want to leverage the full scope ofservice centralization and outsourcing options, while preserving thecapability to eventually change providers or re-insource services. Weare committed to supporting companies using BPO to fully leverage SAPsolutions.

Next Major Events: SAPPHIRE ’05 Copenhagen and SAPPHIRE ’05 Boston
Gain insight into the future of service-enabled enterprise software andlearn how enterprises of all sizes across diverse industries around theworld are using SAP solutions to adapt to market changes, evolve theirbusinesses and achieve competitive advantage at SAPPHIRE ’05, SAPsinternational customer conference, being held in Copenhagen, Denmark,April 26-28, and in Boston, Massachusetts, May 17-19.

About SAPSAP is the worlds leading provider of business software solutions*.Today, more than 26,150 customers in over 120 countries run more than88,700 installations of SAP softwarefrom distinct solutionsaddressing the needs of small and midsize businesses toenterprise-scale suite solutions for global organizations. Powered bythe SAP NetWeaver platform to drive innovation and enable businesschange, mySAP Business Suite solutions are helping enterprises aroundthe world improve customer relationships, enhance partner collaborationand create efficiencies across their supply chains and businessoperations. SAP industry solutions support the unique businessprocesses of more than 25 industry segments, including high tech,retail, public sector and financial services. With subsidiaries in morethan 50 countries, the company is listed on several exchanges,including the Frankfurt stock exchange and NYSE under the symbol SAP.(Additional information at <http://www.sap.com>)

(*) SAP defines business software solutions ascomprising enterprise resource planning and related software solutionssuch as supply chain management, customer relationship management,product life-cycle management and supplier relationship management.

Anystatements contained in this document that are not historical facts areforward-looking statements as defined in the U.S. Private SecuritiesLitigation Reform Act of 1995. Words such as anticipate, believe,estimate, expect, forecast, intend, may, plan, project,predict, should and will and similar expressions as they relateto SAP are intended to identify such forward-looking statements. SAPundertakes no obligation to publicly update or revise anyforward-looking statements. All forward-looking statements are subjectto various risks and uncertainties that could cause actual results todiffer materially from expectations The factors that could affect SAP’sfuture financial results are discussed more fully in SAP’s filings withthe U.S. Securities and Exchange Commission (“SEC”), including SAP’smost recent Annual Report on Form 20-F filed with the SEC. Readers arecautioned not to place undue reliance on these forward-lookingstatements, which speak only as of their dates.

Copyright 2005 SAP AG. All rights reserved.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAPproducts and services mentioned herein as well as their respectivelogos are trademarks or registered trademarks of SAP AG in Germany andin several other countries all over the world. All other product andservice names mentioned are the trademarks of their respectivecompanies. Data contained in this document serve informational purposesonly. National product specifications may vary.

Posted May 25, 2005 in Enabling Technologyin Sourcing

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