HP's Enterprise Services Business Is Getting Back On Track
Whitman says the $18 billion enterprise services business, the bulk of which came from HP's $13.9 billion acquisition of EDS five year ago, has been stabilized.
"When I became CEO, ES [Enterprise Services] was suffering from a number of different challenges: inconsistent leadership, inconsistent strategy, the poor integration of the EDS acquisition and some very serious executional challenges," said Whitman.
Over the course of the last year, Whitman says, HP has significantly reduced under-performing accounts and improved the "predictability of the business" by investing in critical IT systems to run the labor intensive business. "We have reduced costs, and during the first three quarters of fiscal 2013, we delivered operating margin at the high end of the outlook we gave last year," she said.