TRANSFORMATIONS ARE ABUNDANT AT HP; HP SERVICES BRINGS IN A NEW LEADER WHILE FOCUSING ON CLOUD AND ANALYTICS - Sponsored Whitepaper

Sponsored by:
Technology Business Research, Inc Logo
Technology Business Research, Inc
Download Entire Whitepaper
Author: Cassandra Mooshian, Analyst Published: 08.18.11

HP Services' profitability will remain challenged through the HPES transformation

HP reported $9.09 billion in revenue attributable to its Services segment in 2Q11, up 3.6% from the year ago quarter. Growth was driven by slight growth among its IT, technology and application services segments and offset by a 9.5% year-to-year decline in BPO service revenue, which was impacted by a headwind of 400 basis points due to the divestiture from ExcellerateHRO. Contract signings were driven by renewals of existing contracts in 2Q11; the company will continue to push to acquire new customers and expand its services backlog as economic conditions inhibit the pricing environment.

HP announced the appointment of John Visentin to EVP of HP Enterprise Services today, to be effective immediately, as the company continues to transform its services business. Visentin, who previously led HPES' Americas division and before that led IBM's ITS' North American business, will replace Tom Iannotti and report directly to CEO Leo Apotheker. HP's efforts to expand its IT consulting business will continue to negatively impact profitability, with HPES operating margin hovering around 12.5% for the duration of the transformation, which is expected to last another four to six quarters, as stated by HP executives. The transformation includes carrying out initiatives around application modernization, analytics, enterprise cloud services and security.
Download Entire Whitepaper
Copyright © 2014, Questex Media Group LLC
Company descriptions and contact information are quoted from the company's website or other promotional information. Questex is not responsible for the accuracy of this information. Unless specifically noted, Questex is not sponsored by, affiliated with or otherwise connected with any of the listed companies.