{"id":1462,"date":"2011-09-22T13:52:00","date_gmt":"2011-09-22T13:52:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/hp-bandaid-reapplied-092211\/"},"modified":"2011-09-22T13:52:00","modified_gmt":"2011-09-22T13:52:00","slug":"hp-bandaid-reapplied-092211","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/hp-bandaid-reapplied-092211\/","title":{"rendered":"Is the HP Band-Aid being re-applied?"},"content":{"rendered":"
\"\"<\/p>\n

No sooner did they rip it off, they put on another one…<\/p>\n<\/div>\n

We gave\u00a0L\u00e9o Apotheker a strong benefit of the doubt when he recently ripped off HPs proverbial Band-Aid<\/a> and made a series of tough\u00a0announcements\u00a0that could steer HP on a more coherent enterprise path. Sadly for L\u00e9o, his board is clearly in a position where they are unhappy with the progress made under him and want to bring in a very different personality in eBay’s Meg Whitman. \u00a0Coming so soon after the\u00a0quickfire\u00a0announcements\u00a0last month, this can only indicate the HP board are divided on whether\u00a0L\u00e9o was doing what they wanted for the business. \u00a0They may also have felt that L\u00e9o was making decisions without consulting them. Bringing in Whitman indicates they need a strong personnel leader and a\u00a0consensus\u00a0builder to repair their fractured leadership and try and come up with a strategy with which they are all\u00a0comfortable. \u00a0Whitman is unlikely to be a strategist – she is the type of personality to reset the current position of the firm – and could possibly even reverse some of\u00a0L\u00e9o’s recent decisions (although Autonomy seems like a done-deal).<\/p>\n

HfS Research’s COO and SVP of IT Services Research, Esteban Herrera<\/a>, elaborates further on the situation…<\/em><\/p>\n

Here at HfS, we do, however, watch one of HP\u2019s businesses very closely\u2014its outsourcing unit. Phil has blogged in the past about the confusion and challenges faced by HP, and let\u2019s face it, it’s never easy to run a company that big, that diversified, and that volatile. \u00a0There are rampant rumors emanating from several sources that L\u00e9o is out and Meg Whitman is in. I don\u2019t know if Mr Apotheker will survive this crisis, but its clear that the outsourcing business has been neglected by two successive CEOs. Within the same week, different HP executives told us that \u201cBPO would be their growth engine\u201d and that \u201cBPO was an afterthought, a business we\u2019d rather not be in.\u201d\u00a0Within the same week.<\/em><\/p>\n

Here\u2019s a simple prescription which probably will not save anyone\u2019s job but will likely save HP and its services unit. Instead of spinning off PCs (or in addition to it), spin off services. EDS was once a proud brand and completely dominant. It had its issues, but clarity of mission was not one of them. A lot of the talent that rules our industry was groomed there. HP should package its own services unit with what\u2019s left of EDS and sell it back to the Perot family\u2014hey, I\u2019m not suggesting anything that hasn\u2019t been done before!<\/p>\n

I\u2019ve written, somewhat harshly, that HP\/EDS represents the past of the outsourcing industry. But it doesn\u2019t have to be that way. The installed base is enormous, and they would love to have a reason not to switch providers when the contracts come to term. But right now, IT buyers are nervous\u2014they see a rudderless division of a troubled company that is insisting on 40-year old commercial models while sticking its head in the sand to avoid modernizing the way services are delivered.<\/p>\n

Finally, HP\u2019s problems are not all L\u00e9o\u2019s doing. This is an obviously dysfunctional board\u2014they might as well invite WikiLeaks to their supposedly \u201csecret\u201d meetings. There is discord about the direction this company should take, and it is being aired publicly by one or more members of the board. Not even St. Meg of California can fix that.<\/p>\n","protected":false},"excerpt":{"rendered":"

No sooner did they rip it off, they put on another one… We gave\u00a0L\u00e9o Apotheker a strong benefit of the…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,81],"tags":[388],"organization":[],"ppma_author":[19],"class_list":["post-1462","post","type-post","status-publish","format-standard","hentry","category-business-process-outsourcing-bpo","category-it-outsourcing-it-services","tag-hewlett-packard"],"yoast_head":"\nIs the HP Band-Aid being re-applied? - Horses for Sources | No Boundaries<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.horsesforsources.com\/hp-bandaid-reapplied-092211\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is the HP Band-Aid being re-applied? 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