New HP storage services
HP has unveiled five new services designed to assist clients with the management and implementation of storage systems. They address needs such as data replication, data cleansing and disaster recovery. Depending on individual requirements, they can also include consulting, hosting, design, installation, testing, documentation and training. The disaster recovery and data sanitisation services are available immediately, with the rest expected to be available worldwide by the end of the third calendar quarter.
Outsourcing squeezes pricing
The rising popularity of offshore outsourcing will continue to push down the prices of IT services for several years, a welcome development for IT buyers but a challenge for IT service providers, according to a new IDC study. Offshore services often cost less than similar services provided domestically. India has emerged as the world’s largest provider and the US as the largest consumer. Currently, 42 per cent of all active outsourcing engagements have an offshore component, a trend IDC predicts will continue. Other factors cited by IDC in price reductions for IT services last year included the rough economy and an increase in competition.
EDS to restructure
IT services provider, Electronic Data Systems (EDS), is to restructure to reduce costs and improve its bottom line. The plan will include losing 2 per cent of its workforce and focusing on its core outsourcing business. The restructuring actions will result in pre-tax charges and asset write-downs of between $US425 million and $US475 million in 2003. EDS has been struggling on several fronts for the past year or so. Its stock price has shrunk, its sales have been below expectations and it is being investigated by the US Securities and Exchange Commission.