IBM, Automatic Data Processing (ADP), a New Jersey-based HR outsourcing services provider, and Rhodia, a French chemical company, have inked a seven-year Human Resource Outsourcing (HRO) agreement. The contract is estimated to reduce costs on HR-related processes by about 30%.

Under the deal, IBM will provide support for various HR processes, including recruitment, training, compensation and benefits, workforce administration and analysis. In addition, it will also provide global HR information systems to Rhodia to improve standardization of HR processes.

As a part of the deal, ADP will provide its expertise in administration processes, which will allow Rhodia to outsource its payroll services on ADP’s GlobalView platform. The two companies will be implementing these services across Europe, Asia, North America and Latin America during 2007-08, and is expected to improve the HR processes of the company.

The financial terms of the contract were not disclosed.