PeopleSoft Aiming To Help Firms Monitor Costs Of Outsourcing Analysts Say Potential Is Big Firms' spending can be spread among many areas, making it tough to track.(INTERNET & TECHNOLOGY)

Byline: J. BONASIA

Businesses are outsourcing like never before. But they're not watching the costs of contract work as closely as they should.

That's the view of PeopleSoft Corp., the giant in human-resources software.

Companies pay plenty of attention to the costs of supplies, often buying special software to ensure they get the best deal. But few put an equal focus on costs of services by temp workers and contract firms. And services make up 54% of corporate spending, according to the Center for Advanced Purchasing Studies.

With new software, PeopleSoft aims to help businesses rein in these costs. "This is the next big thing for PeopleSoft," said Ted Kempf, a Gartner Inc. analyst. "We believe this can be a significant market."

PeopleSoft launched a division last summer to develop the software. CEO Craig Conway compares the new field, called services automation, and the state of customer relationship management five years ago. Sales of CRM software have grown quickly to $12 billion a year.

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