Hewlett-Packard NZ intends to leverage what it learnt bidding for the Fonterra IT services contract to pursue more outsourcing business.
HP currently has six outsourcing customers. The two largest are Vodafone, for whom it provides transtasman infrastructure outsourcing, and Meridian Energy, for which it provides a similar service. Around 100 of HP’s 550 New Zealand staff are involved in outsourcing.
“We didn’t do ourselves any harm in the Fonterra bid and we’re looking to leverage off that,” says Simon Tong, director of technology solutions and previously acting head of the local company. HP partnered with Unisys, but lost out to EDS for the multimillion-dollar Fonterra contract.
The company has appointed outsourcing specialist Jit Lim as principal of its managed services as it seeks to expand the business. Lim, who was previously with Equinox, was earlier heavily involved with outsourcing for EDS.
HP NZ is chasing a growing opportunity. At an Outsourcing Summit in Las Vegas in May, Gartner analysts predicted that this year outsourcing will account for 53% of the total worldwide IT services market, and three years from now it will account for 56%.
Tong says the outsourcing business is nowhere near the size yet that HP would like it to be.
“We see a lot of potential with the utility computing models we are bringing to market.”
Three weeks ago, HP moved into new purpose-built premises in the Christchurch suburb of Addington.
The Christchurch operation is generating 30% of overall consulting revenue from offshore, he says.