Hewlett-Packard is offering IT outsourcing services that will manage the day-to-day operations of Baan's ERP (enterprise resource planning) software suite.
The outsourcing services will cover Baan's entire ERP product range, according to Phiroze Petigura, HP's ERP program manager. The BaanERP suite includes manufacturing, finance, project, distribution and tools components.
Users of BaanERP software will continue to purchase the licence from Baan and the hardware from other vendors, Petigura said. HP manages the integrated systems and implements a management tool set to keep the ERP system running.
Services are fitted to suit the individual customer's infrastructure, he added.
IT outsourcing services allow customers to bring their systems to production faster, Petigura said. Other benefits of the services include cost savings, compared to organisations which maintain these services themselves, and freeing up internal IS department resources to focus on mission-critical projects, he said.
Competing companies that provide similar IT outsourcing services include IBM, Compaq and CSC.
Within ERP outsourcing, HP focuses on the IT infrastructure, as opposed to the application side of ERP, said public relations manager David Barnes.
HP has built its ERP outsourcing services experience primarily on SAP and is now extending that competency to other ERP apps like Baan, PeopleSoft and Oracle, Barnes claimed.
"We cut our teeth on SAP; Baan is a relatively new service -- we've got about eight pilots running to date," Petigura added.
There are different models for outsourcing IT services, such as total outsourcing of a company's IT needs, or partial outsourcing which is HP's method.
In HP's case, the company takes over the day-to-day operations, running particular aspects of the data centre -- a function normally performed by the customer, Petigura said.
The services are maintained one of two ways, said Petigura.
HP's preferred method is to have the hardware and the software installed at the customer's site, while HP manages the system remotely. This is the most cost effective for HP.
The second option is that HP hosts the system and software licence and runs applications back to the customer's business site or units that need the software.