In offshore outsourcing, selecting six countries Bulgaria, China, Costa Rica, India, Malaysia and the Philippines as its global delivery hubs, the HP today revealed that the further details of its previously announced $1 billion investment in the offshore outsourcing. The company which acquired Information Technology service provide EDS two years ago, it maintains that the restructuring will involved  a total of 9,000 layoffs over the next two years as well as 6,000 new hires. To Rasmussen and Jeff Womack, VP, Best Shore enablement, the CIO.com spoke about the HP’s increased focus on the cost cutting and offshire delivery, its pursuit of domestic business in merging markets and the cristicism that HP does not adequately value the Information Technology services business. The CIO.com says that although the six hubs are not all new to HP, it will be staffing up in the locations. The Rasmussen, they did have a presence in these hubs already, but not at the scale that they currently have or with the government approvals and tax benefits. They are aggressively hiring and building them out the day. They do not disclose numbers at the location level or the best shore level.

From an enterprise services perspective, the six hubs are all large campus like facilities, housing Information Technology outsourcing, business process outsourcing and applications capabilities. The HP also has other needs for the work done offshore, take the case of the Cyberjaya, Malaysia location where they have opened a state of the art global delivery hub with the thousands of employees that do the global delivery work on behalf of their clients. Their CIO Randy Mott will also have a cadre that will maintain applications for the HP. Their CFO will build out financial functions.

The Womack have been doing the business out of Kuala Lumpur since 1986, it is one of their longest running global delivery centers. In India, they have been operating out of six different cities. In Suzhou, China, in the last three weeks they have opened up a center which has the full blown applications suite from the application development and management to testing and SAP implementation. The primary focus is service desk from an ITO standpoint. If they need a level or two support they might do that in China. They will also provide Business Process Outsourcing Processing BPO without voice. The difference between their hubs and the other center is they will drive as much depth and breadth of the service portfolio in the hubs as they can.

REFERENCE:

http://www.techworld.com.au/article/367606/inside_hp_new_1_billion_outsourcing_plan/?fp=4&fpid=242