Rhodia, IBM and ADP have 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 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.

Simon Free, Vice President, Managed Business Process Services IBM France and North West Africa, added: "Rhodia is a global company, headquartered in France, and the agreement with IBM for business transformation allows them to become more flexible and adaptive while focusing employees on the company's core competencies. IBM's extensive experience in human resources services and the chemical industry will bring innovation and new efficiencies to Rhodia and its employees."

"We're pleased to help Rhodia uphold its commitment to delivering quality services to all of its employees worldwide," said George Stoeckert, President of the Employer Services International Division of Automatic Data Processing, Inc. "Rhodia's selection of ADP underscores the momentum of our global offering. It also demonstrates the confidence companies are placing in GlobalView as the global outsourcing service of choice for multinational corporations that want to ensure consistent service and regulatory compliance worldwide."