{"id":1640,"date":"2010-08-08T11:00:00","date_gmt":"2010-08-08T11:00:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/hurd-bpo-080810\/"},"modified":"2010-08-08T11:00:00","modified_gmt":"2010-08-08T11:00:00","slug":"hurd-bpo-080810","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/hurd-bpo-080810\/","title":{"rendered":"Time for HP to shephurd its BPO business"},"content":{"rendered":"
\"\"<\/p>\n

It's not absurd, there's no more Mark…<\/p>\n<\/div>\n

When Mark Hurd <\/strong>took up the reins<\/strong><\/a>\u00a0as HP’s boss back in 2005, the company badly needed him to stabilize the business, drive up the stock price,\u00a0while\u00a0instilling discipline and cost-control into many of its global operations.<\/strong>\u00a0<\/p>\n

Whatever the reason for his demise (and quite frankly, he’s not Tiger Woods, so who cares?), he’s done what HP needed him to do – and this is a good time to put someone else at the helm who can start closing the gap with IBM and others.\u00a0 In fact, he should have gone sooner, because there’s a lot of ground to be made up right across the board.<\/p>\n

One of those is a flagging BPO business that had outperformed anyone’s expectations before the EDS merger threw it into a confused shambles.\u00a0 The addition of EDS should have been the\u00a0cherry on the icing-on-the-cake\u00a0to drive the emergence of a \u00a0major BPO powerhouse<\/a>\u00a0to challenge the likes of Accenture and IBM.<\/p>\n

In pre-EDS days, HP was giving everyone a run for their money winning several mega F&A engagements, such as Nestle, P&G, Clorox\u00a0and Molson-Coors<\/a>, and were doing a great job bundling IT and ERP-enablement services around their BPO.\u00a0 The firm was also discretely picking off payroll-centric HRO engagements and building an impressive competency for running multi-country SAP-based payroll services.\u00a0 HP also boasts one of the world’s largest supply chains it could have leveraged to drive its\u00a0source-to-pay offerings.\u00a0<\/p>\n

But Hurd rarely mentioned BPO in his speeches or strategy discussions – the business relied firmly on the determined leadership of some great individuals (you know who you are) who drove that business in spite of lacking\u00a0much senior leadership support.\u00a0 Consequently, since the EDS merger, more of the BPO leadership exited the business, the ExcellerateHRO business was sold to rivals Xerox(ACS) and the firm is rarely seen in major pursuits.\u00a0 Instead, most of its\u00a0BPO focus is polarized on the healthcare sector, which is smart, but not when the rest of the BPO areas are neglected.<\/p>\n

Bottom-line, Hurd\u00a0is one of those IT operations guys who didn’t quite understand the value and stickiness BPO engagements can bring to a IT-BPO services provider – he’s a dollar- and-cents guy, not a business transformation one.\u00a0 Accenture and IBM have multi-billion dollar BPO businesses.\u00a0\u00a0 Infosys, TCS and Wipro are tenaciously growing BPO business that\u00a0are threatening to\u00a0surpass HP’s.\u00a0 Capgemini has also moved in front of HP in the pecking order in most deal pursuits – particularly in Europe.\u00a0 And even in the verticals, such as healthcare, up-and-comers like Cognizant\u00a0are edging in front.<\/p>\n

HP is a great company and has a solid base of BPO from which to build.\u00a0 But it’s “lost years” in BPO need addressing quickly by whomever next takes the hot-seat.\u00a0 And this time, there isn’t much time, in a polarizing industry with twice as many competitors.\u00a0\u00a0An acquisition or two\u00a0will likely\u00a0be needed to turnaround its stuggling BPO service lines… and we’ll be hinting on where this should come from very soon.<\/p>\n","protected":false},"excerpt":{"rendered":"

It's not absurd, there's no more Mark… When Mark Hurd took up the reins\u00a0as HP’s boss back in 2005, the…<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,835,79,81],"tags":[396],"organization":[],"ppma_author":[19],"class_list":["post-1640","post","type-post","status-publish","format-standard","hentry","category-business-process-outsourcing-bpo","category-f-a","category-hr-outsourcing","category-it-outsourcing-it-services","tag-hfs-research"],"yoast_head":"\nTime for HP to shephurd its BPO business - 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\/hurd-bpo-080810\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Time for HP to shephurd its BPO business - 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