Hewlett Packard today shared details on six countries that will become its global delivery hubs for enterprise services:
- Bulgaria
- China
- Costa Rica
- India
- Malaysia
- Philippines
What will be handled at these locations?
- Business Process Outsourcing
- IT outsourcing
- application development and management
- SAP implementation
- service desk
- global delivery work for clients
- financial functions
CIO.com uncovered the details about this deal and the future of HP services. Read the full Q&A here.
CIO asked a very pointed question regarding multi-shoring in their interview with Robb Rasmussen, VP and GM of BestShore, HP Enterprise Services.
“Given the current economic environment and unemployment in the U.S., how do you address the criticism that you should be hiring more American workers rather than investing in employees overseas.”
I found the answer to be rather compelling in that it is likely also the impetus for ramping up outsourcing at many companies:
“When you take a look at some of the domestic business we do here, a tremendous amount of that work is with the federal government. We’ve established local centers here that provide that work because it cannot be offshored.”..”We balance that the best we can and we do provide tens of thousands of jobs onshore. But our clients want a cost-optimized solution.” Organizations are looking for tasks and services that cannot easily or reasonably be taken overseas, and they implement it to save money for themselves and to pass on that savings to their clients.
The deal will cost $1 billion and is expected to involve a total of 9,000 layoffs over two years and 6,000 new hires. “Many of those 6,000 [new hires] are in sales and delivery, and when looking at delivery, would be mid-career professionals with four or five years of experience as opposed to recent college graduates.”
