EquaTerra Releases Quarterly Outsourcing Surveys Identifying Healthy, Yet Slowing Growth; HR & IT Are Strong Performers

NEW YORK--July 15, 2005--EquaTerra, a multi-national outsourcing and insourcing advisory firm, today announced results from its latest "Outsourcing Pulse Surveys." These quarterly surveys, launched in 4Q04, query those on the "front lines" of the Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) industries to gain in-the-field insights into sector trends and projections. The Outsourcing Pulse Surveys are conducted among EquaTerra advisors and a wide variety of leading service providers.

Reports detailing the results of EquaTerra's 2Q05 Outsourcing Pulse Surveys - covering ITO and BPO activity during April through June 2005 - will be available on July 21, 2005 by sending an e-mail to: research@equaterra.com. A detailed analysis of the 2Q05 survey results will be covered in a webcast on Thursday, July 21 at 1pm eastern time.

Said Stan Lepeak, EquaTerra's Managing Director of Research, "Our quarterly pulse surveys provide a unique and unbiased gauge on the current and projected factors driving ITO and BPO industries. We have been tracking this data for the past three quarters, and will provide full discussion around today's trends, comparisons to historical data and projections for the coming months."

A sample of findings from the 2Q05 Outsourcing Pulse Surveys include:

-- Outsourcing Approach - 'Outsource and transform' a process versus a 'lift and shift' model was the preferred approach supporting demand for providers' with transformation capabilities.

-- Pricing - Variable pricing was cited as the preferred approach, placing more risk on the providers to manage usage and demand.

-- HR, IT and F&A Demand by Process - The three areas of greatest demand in HR are payroll, benefits administration and HR IT. The published reports on the 2Q05 Pulse Surveys - and the July 21 webcast - will provide detailed coverage and discussions not only on HR, but also on IT and F&A process demand.

The surveys covers a variety of other topics including outsourcing sales cycles, industry trends, offshoring, compliance and other critical industry measurements.

To register for the webcast on EquaTerra's 2Q05 Outsourcing Pulse Surveys, please send an e-mail to: allison.norman@equaterra.com. For more details on EquaTerra's Outsourcing Pulse Surveys, please send an e-mail to: research@equaterra.com.

About EquaTerra

EquaTerra, http://www.equaterra.com, is focused solely on providing global corporations with outsourcing and insourcing advisory, research and governance services that enable them to achieve service delivery excellence for their SG&A processes. EquaTerra's advisors average more than 20 years of industry, service provider and process experience with functional leadership in Finance & Accounting, HR, IT and Procurement, and have been involved in over 600 global business transformation, outsourcing and outsourcing governance projects.

For more information, please contact Lee Ann Moore at 713-669-9292; leeann.moore@equaterra.com; http://www.equaterra.com.