Sep 4, 2002 : HP Services to Grow in Asia: Report
📅 - After suffering an enormous quarterly net loss of $2 billion, following its merger with Compaq computer, Hewlett-Packard Co. (hp.com) expects its Asian IT services operation to improve after this year, doubling by 2006, said a report this week by Reuters.
HP reportedly expects revenues to be flat in 2002, but hopes to double its revenues, during the next three years, in Asia Pacific, where companies frequently outsource IT resources to cut costs.
The company's HP Services consulting arm manages information technology resources, generating average quarterly revenue of about $3 billion. It is the company's only profitable business besides its imaging and printing unit, ranking third in the global IT services market behind IBM and EDS.
Research data from Gartner Dataquest says the outsourced IT market totaled $100 billion in 2001, and is expected to grow at a compounded annual rate of 8.4 percent through 2005. HP Services reported worldwide revenues of $13 billion in its 2001 fiscal year.
Following the $18.7 billion merger with Compaq, completed in May, HP says it expects to grow its managed services revenue at an annual rate of six to eight percent over the next four years, twice the current market rate.
HP reportedly expects revenues to be flat in 2002, but hopes to double its revenues, during the next three years, in Asia Pacific, where companies frequently outsource IT resources to cut costs.
The company's HP Services consulting arm manages information technology resources, generating average quarterly revenue of about $3 billion. It is the company's only profitable business besides its imaging and printing unit, ranking third in the global IT services market behind IBM and EDS.
Research data from Gartner Dataquest says the outsourced IT market totaled $100 billion in 2001, and is expected to grow at a compounded annual rate of 8.4 percent through 2005. HP Services reported worldwide revenues of $13 billion in its 2001 fiscal year.
Following the $18.7 billion merger with Compaq, completed in May, HP says it expects to grow its managed services revenue at an annual rate of six to eight percent over the next four years, twice the current market rate.
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