HP (Hewlett Packard) and EDS (Electronic Data Systems) announced on May13th, 2008 that they have entered into an agreement for HP to acquire the latter for $13.9 billion at $25 per share. EDS is based out of Plano,Texas.The deal, amongst other things, is expected to be a harbringer of good business for ExcellerateHRO, the HR service firm owned jointly by EDS and Towers Perrin. Until now ExcellarateHRO's only major HR deal has been with Nestle. This is expected to change once HP comes into the fold with it's industry expertise and significantly greater funding abilities.
Certain analysts believe that HP's EDS aquisition could give it a distinct edge over Dell Inc.
More on the HP v/s Dell battle later...
2 comments:
Here are some corrections and thoughts. Nestle is HP's only major HRO client. ExcellerateHRO's largest signing to date was Cardinal Health, which was an end-to-end outsourcing deal. The implementation will be complete this year.
It should be noted that the worldwide end-to-end market (i.e. the "significant deals" you referred to) is all but dead as companies are either pulling out of deals for convenience (e.g. Starbucks and Convergys) or because of poor execution and complexity (e.g. Wachovia and Hewitt).
The action in North American HR outsourcing market is in the mid-market (i.e. companies with 5k-15k participants) and single tower deals (e.g. DC only, payroll only, etc.).
Keep an eye on further market consolidation as outsourcers and consulting companies navigate a flat market and smaller deals.
Thank You Mr 'Anonymous' for your clarifications. I much appreciate it.
I agree with you as far as the 'death of significant deals' is concerned. HRO never really took off the way it was expected to, and poor execution is one of the primary reasons for it.
This post was essentially a 'News Article' so it was based on what i have been reading and watching, but your evidently knowledgable input is much appreciated.
You come across as an experienced profesional. I would have liked to know who you are.
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