HP’s future – Part Two Can the Phoenix rise up from the ruins …
We left Part One of this series with HP CEO Meg Whitman referring to EDS by name and telling a meeting of HP partners that “EDS is going to be a great turnaround story” – having eliminated the name EDS, the CEO now seems intent on reviving it. With a projected 13% drop in revenues [...]
Read the rest of this entryOutsourcing War – CSC in the frame for Rendition
Computer Weekly is reporting that Human Rights charity, Reprieve, has gathered documents that it says demonstrate CSC had been contracted to carry out multiple illegal CIA renditions. CSC has been linked in court documents to the rendition of the German citizen Khaled El-Masri, whose case against CIA collaborators in the Macedonian intelligence services is pending [...]
Read the rest of this entryMike Lynch is lynched by the HP board
Mike Lynch CEO of HP’s recently acquired Autonomy, is no more. He was ousted in unceremonial fashion just like so many before him, by a HP board which seems set on cannibalism as a trait. Shareholders need to ask two serious questions of Meg Whitman. Firstly, does the HP board really understand what Leo Apotheker, [...]
Read the rest of this entryHP Services Massive Job Losses
McKinsey & Co appear to be spearheading the move to eliminate between 8% and 10% of Hewlett Packard’s workforce of 324,600. Eliminating 26,000 – 34,000 jobs could result in savings of about $1.2 billion and add 50 cents to annual earnings per-share. To blame the iPad and other tablets for the decline in HP’s pc [...]
Read the rest of this entryExtracting value from Xerox-ACS
Xerox shares are trading down 25% on a year ago. Chairman and CEO Ursula Burns is still carrying the burden of her predecessor buying outsourcing company ACS for $8.5Bn in September 2009, an acquisition which, at the time, the markets reacted very badly to driving the share price down 20% (as of writing the shares [...]
Read the rest of this entryFujitsu’s public shame could become a trend
Outsourcing is evolving fast and a new breed of person is being employed to run the supply interface and recommending legal and other forms of confrontation. Frustrated clients are openly fighting back and attempting to hold the Outsourcer to their promises and to force restitution and for heavy financial compensation for any subsequent failures to [...]
Read the rest of this entryTCS – Outsourcing Giant in Crisis
How is it that TCS have let themselves become the subject of a class action lawsuit for allegedly unfairly pocketing their employees US tax refunds? For a highly successful company with a couple of billion dollars in free cash reserves, Monday’s US court ruling allowing the action to take place destroys at one fell swoop [...]
Read the rest of this entryMisys’ Loss is CSC’s Gain? Mike Lawrie sings Outsourcing’s “Times are a-Changing”
2012 sees the premier league of leadership in USA, Russia and China under varying forms of re-election. Even tier two player Sarkozy may fall. In the parallel dimension of “Outsourcing world” there are new CEO’s for ALL tier one players – IBM, CSC (Mike Lawrie elected this very morning) and HP. And tier two players [...]
Read the rest of this entryThe Case for Breaking up HP. Part III
Twice, in September this year, we called for the orderly break up of HP. This was for the historic reasons of board delinquency, lack of strategy etc. HP is both a product company and a services company. With Meg Whitman’s appointment as the new CEO, we thought that she should at least be given the [...]
Read the rest of this entryLogica the dejected bridesmaid
Only 42 days ago the broadsheet headlines were that Logica’s poor performance would lead to yet another takeover bid, well actually speculation about a speculative bid. Under our own headline of “Always the Bridesmaid never the Acquisition” we said that it would not happen. It has not. We refuted Logica’s statements of slowdown’s in the [...]
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