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January 18, 1999

ERP By Andersen-PeopleSoft

Partnership plans overseas services

By Marianne Kolbasuk McGee

ndersen Consulting and PeopleSoft Inc. last week forged an expanded relationship to sell services solutions built on PeopleSoft ERP software to government and education customers in 33 European and Asia-Pacific countries.

The deal builds on an alliance the companies have had since 1993 to target government and education customers in North America, says Randy Hendricks, a managing partner in Andersen's government and education practice. About 10% of Andersen's $6.6 billion worldwide revenue is generated through government and education services. One-third of that segment's revenue is attributed to enterprise resource planning systems, Hendricks says. Andersen and PeopleSoft have implemented PeopleSoft software for about 180 North American government and education customers.

Vinnie Mirchandani, an analyst at Gartner Group Inc., says that while it won't be easy for PeopleSoft to expand its business overseas because foreign governments and educational institutions operate differently than those in North America, the company's alignment with Andersen positions it well.

Andersen and PeopleSoft are bolstering their ERP presence in worldwide government and education markets as opportunities in the Fortune 1000 commercial market fall off. Andersen estimates 60% of Fortune 1000 companies have implemented ERP solutions. Mirchandani says ERP opportunities still exist in the retail, banking, and utilities industries.