Proservartner's point of view on HP's wins of a 7 year F&A BPO service contract and how it affects HP.
HP Enterprise Services has announced that Smith & Nephew has signed a 7-year F&A BPO services agreement that will support the finance transformation in Poland and India for one of the leading healthcare companies in Europe by improving productivity, enhancing quality and providing increased operating flexibility. The financials of the deal were not disclosed.
“As part of our global transformation programme, we intend to streamline our processes while optimising the costs of operations to deliver a more effective service to our customers, suppliers and employees,” said David Trollope, senior vice president, Global Financial Systems for Smith & Nephew. “HP brings a strong track record in managing global finance and administrative processes with a collaborative style that suits our way of working.”
Proservartner Point of View: A great win for HP, and with Genpact in the last two, this was a little bit of a surprise. This was supported through the advisory expertise of Steve Radford, and we understand that the strong HP solution and collaborative approach were seen as the key differentiators.
There has been plenty of uncertainty on whether HP will divest their BPO capability, and key personnel have left due to the uncertainty. We doubt that this win will determine whether HP divests or not, but if nothing else, it will surely push the price up!
