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Hewlett-Packard Conducting Review Of IT, BPO

Started by arunkathir, Sep 12, 2009, 11:10 AM

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Hewlett-Packard Co (HPQ.N) is conducting a strategic review of the information technology and business process outsourcing assets that came with its 2008 acquisition of EDS, a senior executive said on Wednesday.

"Inside ITO and BPO, (we're) conducting reviews to see which ones fit with HP's strategy and which ones bring the best value for the corporation," Joe Eazor, senior vice president and general manager, EDS, said in response to an analyst's question about divesting these assets. Eazor was speaking at the 2009 Citi Technology Conference in New York.

Sources told Reuters last month that HP was considering selling or shutting parts of its outsourcing business to focus on the higher-margin areas of its technology services business. HP, which bought EDS last year for $13 billion, intends to keep those parts of the business process outsourcing operation that complement its hardware and software offerings, Eazor said.

"The focus will be on those areas that provide the greatest amount of leverage," Eazor said. Shares of HP closed Wednesday's trading session up 1.1 percent at $45.98 on the New York Stock Exchange.
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