AT&T has partnered with Oracle to deliver a subscription-based PeopleSoft application for midsize businesses to track pay and benefits, connect with financial back-end systems, and calculate payroll deductions.

The hosted PeopleSoft payroll and payroll tax application combines AT&T’s business process outsourcing services with its utility computing platform and application management capabilities.

It will be delivered over its next-generation Synaptic HostingSM platform that creates a virtual infrastructure that lets customers add computing capacity, bandwidth, and storage space.

In addition, AT&T is expected to offer a fixed-fee, fast-track program for out-of-the-box PeopleSoft applications that help speed the installation time and cut costs.

Ronald E Spears, president and chief executive of AT&T’s Business Solutions division, said: The relationship between AT&T and Oracle is a testament to the commitment we share to each other’s success. Today’s announcement is further proof of how the intelligence of AT&T’s network and its software service-based delivery model complements Oracle’s application solutions to make it possible for even more businesses to operate successfully at greater scale and velocity.

Keith Block, executive vice president of Oracle North America Sales, said: We are excited to work with AT&T to address the need for a cost-effective, predictably priced human resource service for companies that prefer to focus their efforts on their core differentiators. This is especially true in today’s uncertain economic climate where companies of all sizes are looking for ways to reduce costs, increase flexibility and decrease business risk.