Press Release: December 09, 2003
Topics:

HP Announces More Than $1 Billion in New Services Wins Worldwide

HP Services implementing Adaptive Enterprise strategy with customers across multiple industries
PALO ALTO, Calif., Dec. 9, 2003

HP (NYSE:HPQ) today announced a string of information technology services wins, capping four consecutive quarters of growth in its IT services business worldwide. HP Services has major new contracts from clients such as Novell, Land O'Lakes and the U.S. Postal Service in addition to last week's announcement of a $600 million contract with the Bank of Ireland.

HP Services is delivering on the company's Adaptive Enterprise strategy globally with customers across multiple industries, including public sector, financial services, manufacturing and telecommunications/network service providers.

The unit reported $3.2 billion in revenue for the fourth quarter of fiscal year 2003, a five percent increase over the same period of the previous year. Managed services and customer support also experienced solid year-over-year growth in the fourth quarter, with managed services increasing 36 percent - four times the industry average - and customer support revenue increasing five percent.

"These wins illustrate how customers are recognizing the value that the HP Adaptive Enterprise strategy can provide by establishing a strong connection between IT performance and business operations," said Ann Livermore, executive vice president, HP Services. "This continuous growth within HP Services confirms that our strategy helps enterprises become more responsive to changes in their business environments. Customers are looking for a flexible, collaborative approach to IT, and they have found it in HP's Adaptive Enterprise strategy."

"Over the past year, HP has aggressively gone after and won a number of information technology outsourcing deals that establish it as a serious player in the market," said Traci Gere, group vice president, U.S. Services Research, IDC. "Enterprises considering outsourcing deals are calling HP to the table and, increasingly, HP is making the 'short list' and winning."

Examples of the volume and depth of HP Services' contract wins in regions around the world follow.

Americas

Building on its leadership in the public sector, where each year the company does more than $9 billion in business globally, HP won a significant United States Postal Service (USPS) outsourcing contract - an eight-year, $50 million deal. HP expects to provide the USPS with significant cost savings by providing technical support services that establish a single point of contact for resolving all IT issues at the USPS' Washington, D.C. headquarters. HP Services will provide a dedicated remote user help desk, on-site technical support, remote server monitoring, and management for the messaging infrastructure.

HP won a $4.2 million contract with Sandia National Laboratories, a Department of Energy national security lab, for a Linux-based management and clustering solution designed to improve the utilization and management of IT resources while simultaneously lowering Sandia's operating costs.

Steelcase, Inc., a global leader in the office furniture industry, is one of the many companies that recently has engaged HP Services to conduct an Agility Assessment Service. The service applies HP-developed metrics to an organizational analysis of a business' specific needs, enabling companies such as Steelcase to focus its IT investments on areas that will yield a high return on investment and improved business agility.

HP also experienced considerable growth in the area of business continuity services, winning contracts with Sumitomo Corporation, Mitsubishi Corporation, Novell and Land O'Lakes.

HP also announced the following Americas-based contracts:

  • A $38 million contract with Mexican entertainment company Grupo Televisa for comprehensive IT outsourced services to help the company generate new revenue streams and an estimated 15 percent in baseline IT cost savings;

  • An $11 million contract with Brazilian Internet service provider Terremark to relocate its Internet peering infrastructure services to HP's new solution center in Sao Paulo; and

  • A five-year contract with ScanSoft Inc., a provider of software that allows users to incorporate documents, images and speech into digital applications. HP will provide a complete range of software publishing services to address the full software product lifecycle from launch to retirement.

EMEA

In the Europe, Middle East and Africa (EMEA) region, HP announced the following new contracts:

  • A 15-year, $135 million contract with the Romanian National Health Insurance House to develop and operate a system to allow the organization to more quickly redeem health insurance contributions;

  • A $16 million contract for the implementation of Swisscom Fixnet's Integrated Alarm and Performance Management fault and performance management project;

  • A contract with Amen Bank (Tunisia) for consulting and integration services supporting servers, storage, installation, training and customer support; and

  • Consulting and integration contracts with Bank Pekao (Poland), ABN AMRO Bank and Bezeq International Limited (Israel).

Asia Pacific

In the Asia Pacific region, HP announced the following contracts:

  • A $115 million outsourcing contract with Amcor (Australia) for IT consolidation and migration to a new Microsoft-based environment;

  • A $4.4 million contract with Chosun Daily News Paper (Korea) for customer relationship management solutions and storage and network services;

  • For Samsung Electronics, HP has successfully deployed Adaptive Network Architecture services across its organization and four of its subsidiaries to virtualize and extend its corporate network;

  • A five-year contract with the Commonwealth Bank of Australia, one of Australia's most prominent financial institutions. Under the contract, HP will provide business continuity services for recovery and overall continuity for the bank's Institutional Banking division;

  • A contract with Olympus Korea Co., Ltd., for comprehensive enterprise resource planning and operation services; and

  • A major comprehensive outsourcing contract with Vodafone Australia to manage two data centers and midrange and database systems.

About HP

HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. For the fiscal year ending on Oct. 31, 2003, HP revenue totaled $73.1 billion. More information about HP is available at http://www.hp.com.


This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they ever materialize or prove incorrect, could cause the results of HP and its consolidated subsidiaries to differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the proposed contracts may not be entered into on the terms or within the timeframe currently contemplated or at all; that the market for the sale of certain products and services may not develop as expected; that development and performance of these products and services may not proceed as planned; any statements of belief; any statements of assumptions underlying any of the foregoing; and other risks that are described from time to time in HP' s Quarterly Report on Form 10-Q for the period ended July 31, 2003 and HP' s other Securities and Exchange Commission reports filed after HP' s Annual Report on Form 10-K for the fiscal year ended October 31, 2002. If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, HP's results could differ materially from HP's expectations in these statements. HP assumes no obligation and does not intend to update these forward-looking statements.

About HP

HP Inc. creates technology that makes life better for everyone, everywhere. Through our portfolio of printers, PCs, mobile devices, solutions, and services, we engineer experiences that amaze. More information about HP Inc. is available at http://www.hp.com.