EDS boost masks internal HP fury

This week’s planned strike of HP workers is the latest reputational blow for the supplier. And an apt time to blog about it.

HP reported the good news that its services business was growing. The completion of the integration of its EDS acquisition was the main contributor to an increase of 8%.

But the EDS integration  has not been straight forward. Many of its people, which in an industry like outsourcing are pivotal, are unhappy with their new owner.

A series of cuts to jobs, pay and other benefits has turned many against the leadership.

The latest episode saw HP workers, who work at the Department of Work and Pensions, vote for strike. If disruption is caused this week as planned it could damage HP’s reputation and possibly undermine outsourcing in  general.

US staff seem even worse off than UK workers with cuts to pay of up to 50% being made, according to emails recieved by Computer Weekly.

Staff are furious that HP’s top executives are barely touched by the cuts to pay and benefits.

Check out replies to this blog entry in the US to see staff reaction.

But is this just good business?

Or will the EDS beating heart eventually stop?