HP-EDS Australia merger 'mostly done'
The merger of Hewlett-Packard's Australian IT services arm and the local operation of EDS has, for the most part, been completed, according to HP's Asia-Pacific spokesperson.
Back to HP: David Caspari
(Credit: EDS)
HP's US headquarters had announced last Friday that it had added EDS to its Technology Solutions Group (TSG).
According to HP's Asia Pacific spokesperson, Richard Sumich, that move was a change in tack from the original plans for EDS that were announced in September. Back then, EDS was to operate as a distinct unit which specialised in outsourcing and application work and had been called "EDS, an HP company".
Speaking of the original plans for EDS, Sumich said that HP was aiming to take elements of its consulting and outsourcing arm and merge that with EDS "since they had critical mass in those areas."
"We did bring together some components of HP business with EDS and that's been done, or mostly been done, so this is being wrapped up together," Sumich said.
The TSG division consisted of consulting, integration and outsourcing units. Outsourcing and much of the consulting team was pushed into EDS, under the plans announced in September, which then left TSG with enterprise storage and servers, HP software and technology services.
Now, the restructured version of EDS will be transitioned to TSG. "EDS was its own business unit, just like TSG. Now we've announced that it will be in together as one unit under TSG," said Sumich.
The merger has been traumatic for some staff involved. For example, a staff member recently attempted suicide at EDS's Burwood office after being made redundant.
EDS global head Ronald Rittenmeyer earlier this week announced he would retire by the end of the year, to replaced by VP Joe Eazor.
EDS in November publicly confirmed that the pair would follow suit locally with HP's promise to cut 7.5 per cent of its workforce globally, which would mean, according to ZDNet.com.au estimates, about 450 Australian staff; however at least 75 jobs had been cut at EDS in October, just days before HP announced that one of its own executives, David Caspari, would lead the new EDS team.