Points of View

Executive Company Profile: HP’s BPO Division


After its acquisition of EDS in 2008, HP struggled to find its place in the BPO market. Since that time, HP has regrouped, and its outsourcing services are grouped under the HP Enterprise Services umbrella. HP announced a multi-year restructuring program for its enterprise services business in June 2010. The company has since undergone a major restructuring of its organization, including the appointment of a new head of BPO. 

HP’s recently announced layoffs in September of 2012 have created more uncertainty regarding the future direction of HP’s BPO strategy, especially from HP’s client base. These are clearly difficult times for the company: as it prepares to finalize an initial workforce reduction of at least 8%, the firm is working hard to retain its key clients and key staff, let alone pursue new clients. However, the firm has repeatedly assured its clients and key industry stakeholders that BPO remains a strategic business function where the company will continue to invest and seek new client growth. 

HP is using its robust capabilities in IT systems and ERP software to help clients adopt standard offerings that are customized for their needs. These standardized, globally delivered services are designed to help clients achieve reduced cost, greater reliability, and execution speed. Its strong client-centric culture is holding firm amongst the current uncertainty surrounding the future direction of the firm, and HP is determined to hold onto marquee clients such as Proctor & Gamble and Nestlé. 

HP has strong capabilities in F&A, document processing, and CRM services. It also has a strong presence in verticals such as healthcare, financial services, and the public sector. The company’s focus has broadened to include emerging markets such as Asia Pacific and Latin America, where it has increased its sales, business development and solutioning teams to augment its presence in the markets. For example, HP has specifically focused on developing its capabilitles in Brazil, where it has a large presence in financial services, and is looking to add further F&A and CRM clients. HP is also investing in specific offerings in analytics and social media, which are enhancing their overall BPO capabilities.


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