HP receives massive blow by losing DWP contract

HP’s woes contiunue as the Department of Work & Pensions ends an outsourcing agreement with the supplier.

According to a report in the Register Fujitsu Services is replacing HP.

Details are still thin on the ground but this is a blow to HP.

HP staff at the DWP in numerous locations are already involved in an industrial action. A meeting is planned on January 22 to try and sort it out.

Not only has HP got rid of the EDS name but it looks like it might be getting rid of all the business as well.

I also found an interesting website this week that I am sure will be unterested in HP’s current troubles.

But I am sure Mark Hurd theCcEO is not worried.

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Huge contracts need solid governance which has been thought through to manage changing ciscumstances (such as HP acquiring EDS) and steps in a change program. My guess is that the heavy lifting on PCs is over and DWP may have gotten a better deal with Fujitsu but retians HP for applications challenges. The labour problem may have been a trigger or the final drop. In any case this is another UK government contract making haedlines!

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Robert

Do you think HP will be dropped by more organisations? Do you think the DWP decision will make others look again?

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