HP is considering selling parts of its outsourcing business so it can put more effort in more profitable areas...
According to a report by Reuters HP is considering divesting parts of its outsourcing business, including BPO units.
According to the report, a source said HP has calculated that it can get more money for certain parts of the business through a sale now than it can generate in coming years.
Robert Morgan, director at Hamilton Bailey, said it makes sense for HP to sell services such as HR and Payroll. "HP has failed to get the scale it wanted in this type of service and it must be losing money."
HP bought outsourcing service provider EDS last year for $13bn.
HP made $1.6bn profit in the three months to July 31 this year, compared to $2bn in the same period last year.
The results beat expectations. The figures showed a slight fall from $1.7bn in the previous quarter.