Hewlett Packard Enterprise to outsource global IT team to CSC borg The global IT team at Hewlett Packard Enterprise that company execs previously praised for managing the smooth break-up of the organization is finally being rewarded – the entire department is being, er, outsourced. The destination for these techies is the CSC and HPE Enterprise Services borg – the businesses are coming …
At least this is their internal IT services they are outsourcing - we can derive a small amount of joy from the fact that what's left of HPE will soon be feeling the same pain as the rest of us do.
Following on from his successful search for the man who rules the universe, Zaphod's next mission is to find the person who actually does the IT work - I suspect it will turn out to be some poor sod in India with an ancient PC and and a truck load of access tokens.
From the looks of it, going to CSC as those memos speak, means the former HP employees will be booted anyway. Per the latest here on El Reg, CSC is dumping more employees.
Merry freakin' Christmas HP employees. I wish you luck or a severance package that will give you some time to find a good place to land.
Not necessarily. All it really means is that internal services will be treated like any other client now. Those employees working internal IT will move to the capability teams working on clients. If anything, they have a fighting chance to demonstrate their value since they'll be billable. It does mean that it will take an act of Man-in-the-Sky to get internal things done.
So long as they keep paying my invoices, I don't care either way. :)
I think you'll find that after the mis-purchase of Autonomy which cost US$11 billion, everyone on ANY major HP(A/E/I/O/U) board has spent the last 5 years appeasing VERY angry shareholders any which way they can.
I would put approximately 11-billion US$ on this continuing until such a sum has been returned to the shareholders, regardless of what's left of the once-mighty company afterwards..
This model of internal IT being a customer of the IT delivery organisation in CSC sounds on the face of it good eh?
Well, as anyone will tell you it just means you are caught between two grinding wheels - the "customer" wants to pay less for their "service" and your "employer" wants less warm bodies sitting on his furniture.
I think there are probably about 3 CSC internal systems people left these days and they are management.
Who needs support anyway eh?
Expressing my 2 cents on this matter. I think it's really nothing what it is being spun as. They did the same exact thing with EDS before openly acquiring them. CSC has a hiring freeze right now to absorb the HPE employees whom will most likely (knowing CSC) be management heavy and productive employees will remain lighter than needed and take on more work load. Dumping their employees and work load to CSC and then paying CSC to do the work for them seems like a ruse to me. Since they already own EDS there are legality questions in the acquisition of one of their companies main competitors.
From the looks of it on the inside it is being owned by HP and CSC is merely being the puppet.
CSC has been a long time customer of HP products and pushes HP equipment on their clients. So in that sense I already see the conflict of openly owning CSC.
I'd bet 35-40% of HP's hardware revenue comes from CSC contracts.
Although I feel sorry for the coal-face workers caught in the middle of this fiasco.
This is nothing more than HPE management (term used loosely) trying to appease the shareholders for the past years of f%^kups, diminishing returns and sliding share prices, all so they can continue drawing their obscene pay packets and bonuses.
EDS and Worldcom performed a two way outsourcing deal valued at $7 billion for each side of the contract. All the network and security folk transitioned from EDS to Worldcom as part of the deal. Worldcom provided network delivery to EDS, and EDS provided desktop services to Worldcom. This was a disaster for EDS in terms of network delivery (both internally and for EDS clients). EDS also lost all of its networking and security expertise.
The outcome:
• Worldcom went bankrupt
• Dick Brown was fired from EDS
• A number of Worldcom Employees (ex EDS) transitioned back to EDS.
• The two-way outsourcing deal was bad for both companies – increased cost, reduced service delivery, and loss of in-house expertise.
The major mistake in this transaction is that HPE will no longer have in-house expertise to deliver server, storage, and network infrastructure. Will purchasing managers really want to buy HPE hardware from a company that relies on an external third party to install, configure and maintain HPE equipment on its own estate?
All completely true, but internal infrastructure in general has been directed to use internal cloud services whenever possible, as well as the usual stupidity like Sharepoint for any number of things for which it royally sucks. From that perspective, this is also about automating elements that can be, as the internal cloud has a self-service portal.
From my own observations locally, outsourcing your internal IT to CSC is the beginning of the end for corporations.
Dupont is a good example. It is really sad to see the #1 chemical company in world commit suicide. But it is happening, piece by piece.
GM is another example.
I just can't imagine how HPE can remain a credible IT vendor if they can't run their own IT shop.
I was working for another company that spun off of HP. And our management made the genius decision to outsource IT. Of course they claimed it was for the reason that IT was not a core part of their business. Really? Please name one company that doesn't critically depend on IT.
Anyway, the suits came out to the site where we were working and explained their decision. (At least they had the courtesy to talk to us in person.) My only question to them was, "if IT is not a core part of the business, by that same logic, management is not a core part of the business. Are you going to outsource management?" This was not well received.
But for an IT company, to outsource its IT, is unbelievably stupid. I have to agree with SomoneInDelaware on this.
I've really no sympathy for them. The business will not miss them. The entire planning process was a waste of time, submitting requirements which would be ignored. They did make me pine for the days of Compaq IT. (No, I can't believe I said that either.) At least they got stuff done. After a good kicking.
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