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HP and Deloitte Consulting Expand Global Alliance to Help Companies Manage Customer Relationships

Alliance's First Contract Valued at $90 Million

HP (NYSE:HPQ) and Deloitte Consulting today announced an alliance to jointly deliver customer relationship management (CRM) and partner relationship management (PRM) offerings to enterprise clients worldwide. The alliance encompasses the design, build and integration services critical to the successful implementation of CRM solutions, as well as the outsourcing services to manage these solutions.

As a result of the alliance, client companies will be able to use technology more effectively as they strive to attract new customers and retain existing ones. In addition, enterprises will benefit from significant cost savings and flexibility in managing and extending the IT infrastructures that support their business.

HP and Deloitte Consulting also intend to collaborate with clients to address their desire for flexible pricing. The alliance's performance-based fee agreements will allow the two companies to share in the rewards of reaching outlined goals of the engagement, as well as share in the risks, therefore aligning the timing of costs and benefits for clients.

"Our goal is to team with select industry leaders to help companies solidify their customer relationships and manage them in a cost-effective and profitable way," said Uli Holdenried, senior vice president and general manager, HP Services. "With Deloitte Consulting's design and build qualifications and HP's infrastructure technology and services expertise, we are uniquely positioned to help companies around the world in that task. In addition, by sharing the risk and the reward with our joint clients, the alliance offers the flexibility and assurance they need."

First Joint Client

A leading global technology company is the first client of the alliance, having signed a contract valued at more than $90 million. Initially, a six- to nine-month project will focus on improving the client's service and support capabilities by reducing costs, improving efficiency and enhancing the total experience for the client's end customers.

More than 300 consultants from HP Services and Deloitte Consulting are involved in the project, and the implementations are planned for in 56 countries in the Americas, Europe, Africa and Asia Pacific. Deloitte Consulting and HP will work together to roll out Siebel 7 modules for the client company's customer service, call centers, sales force and support organizations as well.

The two companies also will jointly implement another CRM solution focused on the client's parts and logistics system used for end-customer support. They will provide design and architecture services for the CRM application and the associated infrastructure. These services will result in moving the client from disparate systems to one unified, cost-effective system.

"Working with HP as a CRM go-to-market ally not only fills a need in the marketplace but further strengthens our growing business transformation outsourcing position," said Gerry Cunningham, global CRM practice principal, Deloitte Consulting.

Under the terms of the alliance, Deloitte Consulting will provide the system integration, process design and configuration, while HP Services will focus on implementing the IT infrastructure, as well as managing the client's system administration and data conversion from legacy systems.

The market for CRM services is expected to grow 15 percent this year, according to a study from Dataquest, a unit of market researcher GartnerGroup. The CRM services market totaled $22 billion in 2001, up 10.6 percent from the year before. That number is expected to grow to $25.3 billion this year and reach $47 billion by 2006, according to Dataquest.(1)

About Deloitte Consulting

Deloitte Consulting is one of the world's leading management consulting firms and is uniquely known for its straightforward approach to solving today's most complex business challenges. Deloitte Consultants work hand-in-hand with clients to improve business performance, drive shareholder value, and create competitive advantage. The firm has 15,000 professionals in 33 countries and serves more than one-third of the companies in the Global Fortune® 500. It is the only consulting firm with five straight appearances on Fortune Magazine's list of "100 Best Companies to Work for in America." Deloitte Consulting can be found on the Internet at http://www.dc.com.

About HP

HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its merger transaction involving Compaq Computer Corp. on May 3, 2002. The company would have had combined revenue on a pro forma basis giving effect to the Compaq transaction of approximately $81.1 billion in fiscal 2001 and operations in more than 160 countries. More information about HP is available at http://www.hp.com.

(1) Gartner Dataquest, "Strategy Remains Key for CRM," published April 11, 2002.


Deloitte Consulting and the Deloitte Consulting logo are trademarks or registered trademarks of Deloitte Consulting.


This news release contains forward-looking statements that involve risks, uncertainties 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 market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; and other risks that are described from time to time in HP's Securities and Exchange Commission reports, including but not limited to HP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001, HP's quarterly report on Form 10-Q for the quarter ended January 31, 2002 (as filed with the SEC on March 12, 2002) and subsequently filed reports. 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.