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When HP bought EDS for $13.9BN in 2008 there were a few sceptics who thought about the consequences of two big companies merging together and what price the customers would pay.  So far bringing the two companies together has been good for business. In the past 2 months alone we have seen the company win some big deals as reported on offshoring times:

1.    Hewlett-Packard (HP), the worlds largest computer company has bagged a USD 1.4 billion technology infrastructure outsourcing contract from Germanys E.ON, the worlds largest power and gas company by sales. The contract was signed between HPs German unit and E.ONs IT GmbH, the IT and telecommunications subsidiary of E.ON.

2.    NASA has signed a USD 2.5 billion, 10-year outsourcing contract with Hewlett-Packard, to meet it desktop, mobile and other computing needs. The federal space agency announced late last week that it had signed the agreement with HPs Enterprise Services unit in Herndon, Va., formerly known as EDS.

3.    BP has signed a USD 400m five-year outsourcing services deal with HP Enterprise Services.Under the agreement, HP will deliver global datacentre services that enable BP to standardise its hosting services. The deal allows London-headquartered BP to standardise its data centre operations thereby reducing cost, the company said. By establishing a standardised global operating model, BP will realise immediate cost reductions, improved consistency of service and be well positioned to utilise emerging technologies, said BPs CIO Dana S Deasy in a statement.


So in the space of 6 weeks HP has won over $4BN worth of outsourcing business. Surely that is confidence inspiring start to the year for a company that goes from strength to strength. We will see more mergers and acquisitions in 2011. Just 2 weeks back we heard of the 1980’s style buyout of Patni by Igate combining the two companies  to make another billion dollar company in India. I am sure the big heavyweights will not be losing any sleepless nights over it, but companies like TCS & Wipro will just have someone else around the table to compete with and the increased competition should help customers as prices remain competitive in the offshore environment.  

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