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HP today shared details on six countries that will become its global delivery hubs for enterprise services. In this Q&A, CIO.com gets the lowdown on where jobs are being added and eliminated, lock-in concerns and the future of HP services.
By Stephanie Overby Follow
CIO | Nov 10, 2010 7:00 AM PT
HP today revealed further details of its previously announced $1 billion investment in offshore outsourcing, selecting six countries—Bulgaria, China, Costa Rica, India, Malaysia and the Philippines—as its global delivery hubs. Those six spots are "best for our clients and best for where our markets are headed," says Robb Rasmussen, VP and general manager, Best Shore, HP Enterprise Services. (Best Shore is what HP calls its global services delivery strategy within HP Enterprise Services.)
The company, which acquired IT service provide EDS two years ago, maintains that the restructuring will involved a total of 9,000 layoffs over the next two years as well as 6,000 new hires.
CIO.com spoke to Rasmussen and Jeff Womack, VP, Best Shore enablement, about HP's increased focus on cost cutting and offshore delivery, its pursuit of domestic business in emerging markets, and the criticism that HP doesn't adequately value the IT services business.
CIO.com: Although these six hubs are not all new to HP, you will be staffing up in these locations. How many and what types of professionals are you hiring in each country?
Rasmussen: We did have a presence in these hubs already, but not at the scale we currently have or with the government approvals and tax benefits. We are aggressively hiring and building them out today. We don't disclose [employment] numbers at the location level or the "best shore" level.
These six hubs are all large campus-like facilities, housing IT outsourcing, business process outsourcing and applications capabilities. From an enterprise services perspective. HP also has other needs for work done offshore. Take the case of our Cyberjaya, Malaysia location where we have opened a state-of-the art global delivery hub with thousands of employees that do global delivery work on behalf of our clients. Our CIO Randy Mott will also have cadre (in Malaysia) that will maintain applications for HP. Our CFO will build out financial functions there as well.
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http://www.cio.com/article/2413570/outsourcing/inside-hp-s-new--1-billion-outsourcing-plan.html
Thanks, HP!
I don't like to call human beings "monsters," but some sure do behave monstrously and are paid handsomely.
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