HP Unveils Services Contracts

UPDATE: The company says it has rung up more than $1 billion in new business from the U.S. Postal Service, Mexico's Grupo Televisa, Australia's Amcor and the Romanian National Health Insurance House, among other

Hewlett-Packard Co. on Tuesday announced that has signed a handful of new services contracts valued at $1 billion-plus.

Along with the $600 million outsourcing contract it announced with the Bank of Ireland last week, HP also announced a string of smaller outsourcing contracts across the globe. The work spans a range of activities, from technical-support services to new technology implementations designed to reduce IT operating costs as well as business continuity services and HPs Agility Assessment Service.

"We have great momentum in managed services. We are a challenger to IBM. Were taking share from competitors in the customer support space and moving more toward proactive relationships. That leads in some cases to more consulting engagement," said Juergen Rottler, vice president of sales and marketing for HP Services in Palo Alto, Calif.

Although Rottler would not comment on HPs plan to combine its services business with its Enterprise Systems Group under Ann Livermore, he said that, "Were seeing increasingly services being a big driver for the rest of the business. Were seeing growth across all the regions and the key industries were operating in."

Along with new business continuity contracts with Novell Inc. and Land O Lakes, the smaller services deals include a 15-year, $135 million contract to develop and run a system to allow the Romanian National Health Insurance House to speed the redemption of health insurance contributions. HP also won a $115 million outsourcing contract with Australias Amcor that calls for consolidating IT and migrating to a new Microsoft-oriented environment.

In the United States, HP won a $50 million, eight-year outsourcing contract to provide the United States Postal Service with technical-support services for its Washington, D.C., headquarters. The deal calls for HP to deliver on-site technical support, a dedicated remote user help desk, server monitoring and management of the USPS messaging infrastructure.

HP in Mexico in a $38 million contract will provide entertainment company Grupo Televisa with IT outsourcing services designed to help the company generate new revenue streams and at the same time reduce IT costs by 15 percent.

Other new contracts include a $16 million services contract with Swisscom Fixnet; an $11 million contract with Brazilian Internet service provider Terremark; a $4.4 million contract with Koreas Chosun Daily News Paper for CRM, storage and network services; and a $4.2 million services deal with Sandia National Laboratories for Linux-based management and clustering.

Editors note: This story has been updated to include comments from Juergen Rottler, vice president of sales and marketing for HP Services.