Proservartner's point of view on HP's wins of a 7 year F&A BPO service contract and how it affects HP.
HP Enterprise Services has announced
that Smith & Nephew has signed a 7-year F&A BPO services agreement that
will support the finance transformation in Poland and India for one of the
leading healthcare companies in Europe by improving productivity, enhancing
quality and providing increased operating flexibility. The financials of the
deal were not disclosed.
“As part of our global
transformation programme, we intend to streamline our processes while
optimising the costs of operations to deliver a more effective service to our
customers, suppliers and employees,” said David Trollope, senior vice
president, Global Financial Systems for Smith & Nephew. “HP brings a strong
track record in managing global finance and administrative processes with a
collaborative style that suits our way of working.”
Proservartner
Point of View: A great win for HP, and with
Genpact in the last two, this was a little bit of a surprise. This was
supported through the advisory expertise of Steve Radford, and we understand
that the strong HP solution and collaborative approach were seen as the key
differentiators.
There has been plenty of
uncertainty on whether HP will divest their BPO capability, and key personnel
have left due to the uncertainty. We doubt that this win will determine whether
HP divests or not, but if nothing else, it will surely push the price up!
Rakesh is a strategic advisor,
solution architect and implementer of transitions and transformations for Outsourcing, Shared Services &
Offshoring sectors, and currently is a partner at Proservartner.For more articles: www.Proservartner.co.uk
