Annex Newsflash 2005-14                             April 16, 2005


Analysis of Hewlett-Packard Services' International Business

A Passage from India to Poland

HP Wins Major Bank Deal in India, Opens New BPO Center in Poland

NEW YORK, Apr 16 – Sometimes you can hit two birds with one stone even on two different continents.  Hewlett-Packard Services (HPS) did it on Friday when it announced another major outsourcing win in India (yes in India!), and the opening of a new business process outsourcing (BPO) center in Eastern Europe (Poland).  

A beet soup curry?  Why not?  It works, if you're in a global business...

Bank of Baroda, India's leading bank, has selected HP to develop a single, portal-based IT infrastructure to be deployed across the bank’s worldwide operations.  Bank of Baroda operates in 20 countries and provides financial services to 25 million customers.  Its business exceeds 120,000 crores (US$26.6 billion).  The bank has made continuous profits since its inception in 1908.

As part of the contract, HP will design, build and manage data centers that will host the compute, storage and connectivity infrastructure for the bank, and will also provide disaster recovery and business continuity solutions. Additionally, HP will design, deploy and manage the bank’s network implementation.

"We are committed to offering our domestic and international customers a total customer experience with world-class banking solutions," said Dr. Anil Khandelwal, Bank of Baroda's chairman and managing director said in a statement.  "Through this initiative, we will be able to provide our customers with new options and choices that will make it easier and more convenient for them to do business with us, anytime, anywhere across the globe."

This is HP's second major outsourcing win in India.  The first one took place just over a year ago when HP won a $150 million-contract at Bank of India (see "A Passage from India," Mar 2004).  Although no financial details were released, the Bank of Baroda project is believed to be larger than the deal HP signed last year (also see  "A Passage to India"?, July 2003, and "China Now Bigger Than the U.S.," Jan 2004). 

BPO Center to Open in Poland

Separately, HP also announced on Friday that it plans to invest $50 million over five years to build a new business process outsourcing (BPO) center in Wroclaw, Poland.  The center is expected to help drive commerce to Poland, expand HP’s growing BPO business globally, and enable the company to offer local financial and accounting services to multinational companies that have pan-European operations.

The move signals increased awareness among the global multinationals of the sophistication and attractiveness of Eastern Europe's labor force.   For more on that, check out "To Russia with Love and $$$" (Oct 2004).

"The decision to expand HP’s BPO business into Poland is a win-win situation for HP and Poland," said Andrezej Dopierala, president, HP Poland in a statement. "The country’s resources and proximity make it an ideal location for HP to continue the momentum of its services division and the new center will bring new business and jobs to the community."

Wroclaw was selected as the site to meet the increasing demand for outsourced services due to its central location in Europe and well-developed information technology infrastructure.  Once the center is developed, it is expected to employ approximately 1,000 employees who will provide financial and accounting services.

Happy bargain hunting!

Bob Djurdjevic

For additional Annex Research reports, check out... 

2005 IT: HP: From India to Poland (Apr 2005); IBM: Slammed and Dunked (Apr 2005); Accenture: Roaring Ahead (Apr 2005);  Fujitsu Unveils New Servers (Mar 2005);  EDS Executive Suite; HP's New CEO (Mar 2005);  An iSeries Revival (Mar 2005);  EDS Booster Club Fees Rise (Mar 2005);  An Upside-Down View (Mar 2005);   The Worst of Both Worlds (Mar 2005);   Octathlon 2005: Accenture Wins (Mar 2005);  IBM Global Services: Smaller, Shorter - Better? (Mar 2005);  IBM 5-yr Forecast: Quality over Quantity (Mar 2005); Rumor Lifts EDS', Fujitsu's Shares (Mar 2005); Capgemini: Turning the Corner (Feb 2005);  IBM Servers to Grow Again (Feb 2005);  Carly's Fickle Fans (Feb 2005);  CSC: Gearing Down on Purpose (Feb 2005);  EDS: Grossly Overpriced Stock (Feb 2005);  IBM Historical Update: 2004 Shot in the Arm (Feb 2005); New HeadTurners Series #1 (Feb 2005); IBM: A Crescendo Finale! (Jan 2005); Accenture: Strong Finish, Better Start (Jan 2005); Annex Coverage 2004: IT Services Dominate (Jan 2005)

2004 IT: EDS: The Titanium Stock (and other Wall Street tales) (Dec 2004); IBM PC: Good Riddance (Dec 2004); Fujitsu: Recovery Continues (Nov 2004);  IBM Server Renaissance (Nov 2004);  HP Hits Home Run (Nov 2004); Capgemini: Revenue, Stock Soars (Nov 2004); EDS: Jordan's Swan Song? (Nov 2004);  To Russia with Love and $ (Oct 2004); IBM: Slow Quarter No Longer (Oct 2004); Accenture: Revenues, Profits Up, Stock Down (Oct 2004); Capgemini: A Takeover Target? (Oct 2004); Sellout of America (Oct 2004); Spy Wars (Sep 2004); Outsourcing Boomerang (Sep 2004); EDS to Cut Up to 20,000 More Jobs (Sep 2004); Capgemini Stock Plummets on Unexpected Loss (Sep 2004); HP Savaged by Wall Street (Aug 2004); Moody's Lowers the Boon on EDS (July 2004); HP: Delivering Value Horizontally (June 2004); Accenture: Revving Up a Notch (June 2004); Beware Your CFO! (May 2004)IBM: Changing of the Guard (May 2004); Capgemini: Texas-size Home Run (May 2004); Following the Money (May 2004);  EDS: On a Wink and a Prayer (Apr 2004); HPS Wins by a Nose! (Octathlon 2004); Accenture: Burning the Track (Mar 2004);  IGS: "Crown Jewel" Restored? (Mar 2004); HP: Still No Cigar (Feb 2004); Cap Gemini: Another, Smaller Loss (Feb 2004); CSC: Good Quarter Gets Boos (Feb 2004); EDS: "Hot Air Jordan" Flaunts Flop as Feat (Feb 2004); IT Industry: Whither Goeth It? (Jan 2004); Cronyism Is Alive and Well at EDS" (Jan 2004)

Or just click on and use "financial engineering" or similar  keywords.

Volume XXI, Annex Newsflash 2005-14
April 16, 2005

Bob Djurdjevic, Editor
(c) Copyright 2005 by Annex Research, Inc. All rights reserved.

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