HP goes big on IT outsourcing in Greater China

Hit by the global slowdown in hardware sales, Hewlett-Packard has intensified its efforts in IT outsourcing--with impressive results so far in Greater China (including Hong Kong and Taiwan).

SINGAPORE--Hit by the global slowdown in hardware sales, Hewlett-Packard has intensified its efforts in IT outsourcing--with impressive results so far in Greater China (including Hong Kong and Taiwan).

By leveraging on its ties with technology consultancy Accenture and its recent acquisition of Comdisco's technology services business, HP has been able to clinch significant deals in Greater China, reported the South China Morning Post, quoting HP officials.

According to the general manager for HP services in Greater China William Poon, the company expects to register "between 30 and 50 per cent annual revenue growth from accelerated outsourcing initiatives in Hong Kong, the mainland and Taiwan'', SCMP reported.

Poon added that HP's growth estimates for IT outsourcing business in the region surpassed the 20 per cent annual average projected by International Data Corp (IDC) for Asia Pacific from last year to 2005. According to IDC, global spending on information systems outsourcing services hit US$56 billion last year and would exceed US$100 billion by 2005.

IT outsourcing deals clinched recently by HP in Hong Kong and the mainland included:

  • A HK$32 million, one-year extension by the Hong Kong government to run its office automation program. The original HK$97 million contract was from July 1999 to June this year.

  • A US$10 million information systems outsourcing deal with telecom equipment maker Ericsson that covered mainland China, Hong Kong and Taiwan.

  • A US$6.75 million, three-year deal with CargoSmart, a subsidiary of Orient Overseas Container Line. It involves business consulting, hosting its Web portal, running a multi-lingual help desk and application support.

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