I recently ran some blog posts giving the predictions for 2013 from of outsourcing industry experts.
One commenter, Robert Morgan, talked about how some of the “suppliers are on life support.”
He said this: “HP and CSC’s problems are well documented. However HP’s cannibalistic tendencies regarding their numerous CEO’s will rear up again and see Meg claiming unemployment benefit before the year is out. CSC has been selling its assets and may survive but not as we know it today. IBM is bereft of new ideas and will lose renewing client in profusion. Regional players like CGI Logica and Atos will benefit especially when the EU starts its new run of legislation (see below). Will there be any logo deaths in 2013? It is possible, but the break-up into saleable smaller entities seems logical and necessary.”
Well HP has said it will dispose of units that don’t hit targets. According to an article on Bloomberg HP will continue to “evaluate the potential disposition of assets and businesses that may no longer help us meet our objectives.” This is what HP said in a filing with the US Securities and Exchange Commission.
I wonder what HP’s targets are for the services business. Last year was not good and it had to write down the value of its EDS acquisition by $8bn.