Rhodia, IBM and ADP Sign Strategic Agreement to Optimize Rhodia’s Human Resources Organization

Rhodia, IBM and ADP Sign Strategic Agreement to Optimize Rhodia’s Human Resources Organization

Rhodia (NYSE: RHA), IBM (NYSE: IBM) and ADP (NYSE: ADP) today signed a 7-year strategic worldwide agreement to optimize Rhodia’s Human Resources organization by outsourcing the administrative and support areas of key HR processes The partnership with IBM and with ADP will allow Rhodia to focus on strategic HR issues, while increasing the flexibility of the organization to better manage variations in its business scope and development in fast growing regions. The agreement is expected to reduce costs of the related HR processes by 30%.

IBM will provide Rhodia with support for HR processes such as recruitment, training, compensation and benefits, workforce administration and analysis, as well as specialized technology, including Global Human Resources Information Systems to improve process standardization. ADP’s expertise in personnel administration processes and the global coverage of its operations will allow Rhodia to take advantage of global comprehensive outsourcing payroll services on ADP’s GlobalView(SM) platform.

The implementation of this innovative approach in Rhodia’s operations in Europe, Asia, North and Latin America during 2007 and 2008 is expected to significantly improve Rhodia’s HR processes and will represent a new stage in the Group’s strategy of optimizing the costs of its support functions. “Partnering with IBM and with ADP will be a major driver in building a leaner, faster and more strategic human resources organization,” said Bernard Chambon, Rhodia’s Group Executive Vice President, Human Resources, Communications and Sustainable Development. “Our HR teams will thus be able to concentrate on key tasks such as change management, competency and career development and social relations, and to support the growth of our businesses.

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