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Compaq Services consolidates despite growth

Compaq Services consolidates despite growth

Still battling a perception problem which has seen it "sometimes viewed as too fast and sometimes not fast enough", Compaq Services is sticking to its "steady-as-she-goes" approach to securing small and medium-sized services and outsourcing contracts.

Speaking to ARN last week, Cris Nicolli, director of Compaq Services, claimed that while this fledgling arm of Compaq has experienced growth rates in the vicinity of 40 per cent over the last two years, there is still plenty of work to be done to consolidate the business.

"For Compaq Services to maintain steady growth, we need to stress the idea that services drive the fundamental value proposition for every Compaq division." Nicolli added that while Compaq Services had recently won multimillion-dollar deals with Gold Coast City Council and Queensland electricity utility Energex, the organisation has plans to foster new business through e-commerce and expand its recruitment drive.

"We have received plenty of recognition for the Web site development outsourcing and e-commerce work we've been doing, however they are markets we haven't had much of a presence in," Nicolli said.

Indeed, Compaq Services certainly has the behind-the-scenes muscle to compete with leading outsourcers such as IBM GSA, CSC and EDS. As a result of the Digital merger, the organisation now employs almost 1500 staff and has 61 local partners. It has operations in 72 locations across the country and offers support for more than 14,000 products.

However, the challenge of boosting its profile among customers and channel partners remains Compaq Services' biggest hurdle. To this end, Compaq Services director Pathy Pathmanaban said the organisation has been encouraged by channel interest for its Carepaq solutions. Launched in September last year, the Carepaq range is available for a host of Intel products with other solutions to be announced shortly.

Pathmanaban said the Carepaq solutions allow resellers to on-sell packaged service offerings to customers. He claimed that with reasonable margins of 9 per cent per sale, they are an attractive sales proposition for resellers that cannot supply their own services.


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