Human resources might seem the very antithesis of an e-business but a new venture aims to give this most people-centred activity the digital treatment.

BT and Andersen Consulting are to form 'e-peopleserve', providing 'electronically-enabled' human resources services and solutions for large companies. The new company, a 50:50 joint venture, aims to serve the growing market demand for comprehensive HR services from both BT's and Andersen Consulting's corporate and public sector clients, as well as meeting the internal HR service needs of the parent companies.

It is expected that e-peopleserve will become operational this summer, subject to regulatory approval. It will concentrate initially on the UK market before expanding globally. The new venture will be built around 1,100 employees from BT Human Resources and Development Services.

John Steele, BT's group personnel director, said: "BT has invested strongly to bring industry-leading capability to its own delivery of HR administration which is now very highly regarded. By joining Andersen Consulting in the creation of e-peopleserve, BT will maximise its return on that investment and receive an even more effective HR operational service. It is a very good opportunity for people in our HR Services activity."

David Clinton, managing partner of Andersen Consulting's e-Human Performance practice, said: "Combining BT's skills with those of Andersen Consulting will create an alliance which deploys the strengths of two world leading organisations. This joint venture will strengthen our globally recognised e-commerce credentials and capabilities through global service offerings to corporate clients. This venture breaks new ground in the HR services sector. This is a genuine market-making opportunity and an exciting proposition for clients among the top global 1,000 companies."

Richard Byatt