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Report information:

HP Enterprise Services - Application Outsourcing 2014

Vendor Analysis

by Dominique Raviart

published on Mar 13, 2014

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Report Overview:

In FY 2013 (the period ending October 31, 2013), HP generated revenues from IT service and BPO services of $32.4bn, including $8.8bn from application services and BPO. HP Enterprise Services, operating through HP Application Services (HP AS) has a traditional background in three major offerings, which together account for 90% of its resources: application development, testing and quality assurance, and applications management.

Who is this Report for:

NelsonHall's Application Outsourcing Vendor Assessment for HP Enterprise Services is a comprehensive assessment of HP's application outsourcing offerings and capabilities designed for:

  • Sourcing managers monitoring the capabilities of existing suppliers of IT services and identifying vendor suitability for application outsourcing services
  • Vendor marketing, sales and business managers looking to benchmark themselves against their peers
  • Financial analysts and investors specializing in the application services, application support and maintenance sectors.

Scope of this Report:

The report provides a comprehensive and objective analysis of HP Enterprise Services' application outsourcing offerings, capabilities, and market and financial strength, including:

  • Analysis of the company's offerings and key service components
  • Revenue estimates
  • Identification of the company's strategy, emphasis and new developments
  • Analysis of the profile of the company's customer base including the company's targeting strategy and examples of current contracts
  • Analysis of the company's strengths, weaknesses and outlook.




Key Findings & Highlights:

Specifically to AM, HP Enterprise Services has made a number of recent changes in its offerings and delivery mechanisms. These changes have included:

  • In 2010: the launch of its NextGen AM offering
  • The introduction, in the same year, of its industrial delivery system (IDS), a factory-based shared client delivery network across the globe.

NelsonHall believes that of these two major changes, the most successful has been the adoption of NextGen AM. HP Enterprise Services is actively talking to current clients to adapt their pricing and delivery schemes. For new contracts or new clients, the company is submitting a combined NextGen AM/IDS offering in its bids.

In 2013, HP Enterprise Services had several initiatives relating to its AM-centric portfolio of services:

  • Introduction of business outcome service management, a business process monitoring service
  • Application performance monitoring, a perfective and predictive maintenance service
  • Increased focus on HP Software products, especially around HP business service management; the approach is to further automate incident and event management and drive a change from reactive maintenance to proactive and preventive management.

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