May 25, 2016
Offshore workers to replace Hewlett Packard’s local teams
Last updated August 31, 2018
Hewlett Packard Enterprise (HPE)’s decision to spin off its troubled services business could mean 60% of its personnel in the US and Europe would be replaced by new workers in lower-cost labor markets, including the Philippines. HPE said it will spin of its long-troubled services unit and merge it with the IT services firm CSC in a deal worth about USD8.5bn. The new company, temporarily named Spinco, will be a dedicated player in the low-margin, IT outsourcing market, the company said. HP CEO Meg Whitman earlier said 60% of HPE’s services personnel would be replaced by new workers in offices in the Philippines, Bulgaria, India and Costa Rica by 2018.