Deutsche Post World Net (DPWN) announced today it has signed a letter of intent withHewlett-Packard (HP) to outsource parts of its global IT operations, saving it at least EUR 1
billion over the next seven years. A definitive agreement is expected by mid-2008.Under the terms of the agreement, DPWN expects to save at least EUR 1 billion over the nextseven years by driving down overall IT costs and better leveraging IT resources needed to run thebusiness and service customers. No figure for overall IT costs was given.
If an agreement is reached, HP would take over the approximately 2,500 employees whocurrently provide the services for DPWN’s data center operations – including information & datamanagement, infrastructure & network management, and application management. Specifically thiswould cover IT operations in Prague, Scottsdale (Arizona) and Cyberjaya (Malaysia), as well as in anumber of European countries.
All applications used by DPWN customers will continue to be designed, developed and governedinternally, including IT security standards and their implementation. DPWN will also retain theProfessional Services and Customer Integration Supply Management components of its IT Servicesunit, including project management, project consulting, application development and deploymentservices, as well as electronic data integration for its messaging and supply chain programs.
“We are constantly looking for new ways to reduce costs and improve the quality of theservices that we provide to our customers,” said DPWN CFO John Allan. “This initiative wouldsignificantly contribute to achieving our business objectives, while preserving the high level ofservice that our customers expect.”
“HP has a high level of understanding of Deutsche Post World Net’s IT environment,organization and culture, which has been developed over a 15-year relationship,” said FrancescoSerafini, Senior Vice President and Managing Director, HP EMEA. “With our highly experiencedservices professionals and global capabilities, we propose to deliver a more simplified andflexible IT infrastructure that would deliver true business value and effectiveness, a betterreturn on IT and reduced operational costs.”
