Combining HP, Compaq Services Efforts a Formidable Task
Turning the combined services operation into a solid No. 3 player that can compete on a par with IBM Global Services and Electronic Data Systems will take a lot of thought, discipline and careful execution.With the vote likely to go in favor of the merger between Compaq Computer Corp. and Hewlett-Packard Co., the integration of the services organizations will soon begin in earnest. But turning the combined services operation into a solid No. 3 player that can compete on a par with IBM Global Services and Electronic Data Systems will take a lot of thought, discipline and careful execution. Although details about the integration effort are not yet available, HP executive Ann Livermore will lead the combined services organization as executive vice president of services. The $15 billion services organization, which will become a 60,000-strong work force (65,000 with contract workers), will be headquartered in Northern California near Palo Alto.
As HP and Compaq work to combine the two services operations, they will take care to ensure that existing customers are not affected, according to Peter Mercury, senior vice president at Compaq Global Services in Littleton, Mass. "The first principle in services integration work is not to disrupt any work with the customers. We dont want to change customer facing employees and the first line of management they work for. If we can insulate them from the organizational activities, chances are customers will hardly feel this," he said.