HP Outsourcing 3 Units in India to Support Growing Services Effort
To cater to the rising demand of low-cost services of its clients, Hewlett-Packard is opening three new outsourcing centers in India. The company announced an investment of $1 billion for the project, and this expansion is a part of HP’s larger plan around building out its service offerings. Managing the various niches HP is venturing into will be a massive undertaking, and the company’s delve into the Indian market includes participating in the job market.
While not many details have been provided by the company, the new outsourcing offices are expected to open up in southern Indian cities of Chennai and Bangalore with approximate property of 5,00,000 square feet.
HP has planned for this expansion to tackle with its competitors IBM, Accenture and Dell, who are already increasing their staff as well as their presence in India. As Indian companies are also keen on expanding in the international scene, big players are trying to tap the potential of these low-cost but optimum-quality service providers. This is also the reason that India’s software service industry expects its export revenue to grow by 13% to 15% by end of this fiscal year, ending on March 31, 2011.
“Clients leveraging skilled resources in India for their enterprise expect high-value services in addition to lower costs,” said Robb Rasmussen, vice president and general manager at H-P.
An important vertical HP has recently expanded to is security. It’s launched its new ALM (Application Lifecycle Management) 11 to convey its serious intentions of building a strong hold in the software industry. “The competition in the ALM space has started to heat up over the last year,” said Dave West, an analyst with Forrester Research. “This HP release is essentially an announcement around the Mercury tools that came into HP through an acquisition four years ago.”
We all know HP as a leader in hardware, but this step of theirs will help them make a transition into software industry as well.
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