Deutsche Post World Net (DPWN) has decided to stop its planned global IT outsourcing deal withHewlett-Packard and will seek to achieve the €1 billion worth of planned savings internally
instead.The group announced in January that it had signed a letter of intent with Hewlett-Packard(HP) to outsource parts of its global IT operations, saving it at least EUR 1 billion over the nextseven years. HP was due to take over the approximately 2,500 employees who currently provide theservices for DPWN’s data center operations – including information & data management,infrastructure & network management, and application management. Specifically this would coverIT operations in Prague, Scottsdale (Arizona) and Cyberjaya (Malaysia), as well as in a number ofEuropean countries.
But DPWN said in a note in its Q2 interim report that it would not pursue this plannedagreement. “After careful review of the offer, the board of management came to the conclusion thatthe cost reductions of €1 billion … will be more easily attainable if the units in question remainwithin the group,” it stated. CFO John Allan said at last week’s half-year results press conferencethat DPWN would work “constructively” with HP, which is a key IT supplier, to achieve the plannedsavings internally instead.
US magazine Information Week cited an internal memo saying that DPWN decided against the dealafter concluding that the benefits did not outweigh the risks, and that the internal DPWN ITdepartments had improved their cost base in the meantime.
