HP Inks $1.4 Billion Outsourcing Deal With German Utility E.ON


Talk about an early holiday present: HP on Wednesday inked a five-year, $1.4 billion infrastructure outsourcing services contract with German utilities giant E.ON, under which HP will oversee data center and workplace services for about 80,000 employees.

HP will also take on the role of integrator, working with E.ON's existing technology partners to ensure that deployments run smoothly, and more than 1,100 of E.ON's 88,000 employees will move over to HP next April to assist in this effort. E.ON already purchases technology equipment, support services and managed print services from HP.

HP, of course, is comfortable playing the integrator role because it's intimately acquainted with the challenges of doing business with the world's largest companies.

"HP’s experience in managing complex outsourcing engagements and leading the management of multi-supplier environments will enable E.ON to focus on delivering better business results and drive growth," Jan Zadak, senior vice president of HP's EMEA Enterprise Business, said in a statement.

HP's data center services, part of its Infrastructure Technology Outsourcing portfolio, include archiving and compliance, application hosting, managed mainframe, server and storage management and Web hosting. HP's workplace services include asset management, client virtualization, managed print, service desk, site support, mobile workplace, server and software management.

Much of HP's services delivery capabilities come from its 2008 acquisition of global integrator EDS, which HP bought in order to compete on more equal footing with IBM. At the time, EDS was one of the largest vendor-independent outsourced services companies in the world, and a key integration partner of both HP and IBM.

In August 2009, rumors surfaced that HP was considering selling off of shutting down portions of its outsourcing business, including parts of its EDS business. HP CEO Mark Hurd had reportedly been looking at scaling back HP's low-margin business process outsourcing business, sources familiar with the matter said at the time.