The joint venture between EDS and Towers Perrin is part of the ongoing consolidation of the HRO market as vendors seek to combine HR strategy, best-practice process execution, and technology outsourcing into broad HRO offerings. The EDS/Towers Perrin combination should be considered a leading player in this broad HRO market. The next step for EDS/Towers Perrin and other holistic HRO vendors will be to deliver flexible process and technology platforms, which can minimize provider cost through leverage and scale while also providing tailored solutions to end users.