PeopleSoft to use own software to cut costs

LOS ANGELES: PeopleSoft Inc. on Wednesday said it expects to save $20 million

over the next five years by having its 8,500-plus employees use the company's

own Web-based software to automate human resource activities.

Sounds familiar? It should.

Last year, No. 2 software maker Oracle Corp. said that using its own

e-business software - or eating its own dog food - was saving the company $1

billion annually.

"I don't like to eat dog food. Our employees don't like to eat dog food.

Our customers don't like to eat dog food," PeopleSoft Chief Information

Officer David Thompson said, referring to Oracle's high-profile ad blitz.

"At PeopleSoft, we like to drink our own champagne," said Thompson.

He is among the critics of Oracle's billion-dollar savings claim who say the

database giant cut its costs, in part, by closing unprofitable data centers.

Thompson said PeopleSoft's more modest savings will come via reduced

information technology (IT) expenses, decreased labor and material costs, and

overall efficiency improvements.

In particular, he said, implementing the software enabled PeopleSoft to cut

two positions in its human resources department and to slash the price of a

human resources training project from $250,000 to $8,000.

Pleasanton, California-based PeopleSoft sells software that automates a

variety business operations including human resources, financials and customer

service. Its new Web-based products use the Internet to increase collaboration

and mobility.

Thompson said his IT department was $6.2 million under budget in the first

quarter because he was able slash its need for support and third-party

maintenance and products.

And, he said, the company is not yet finished cutting costs. This week,

PeopleSoft will begin using its new customer relationship management (CRM)

product to streamline customer service activities.

(C) Reuters Limited 2001.