EDS to HP: A Rose By Any Other Name…

By: Mark Mayo, Partner & President, Global Resources Management, TPI

Today’s big news is that the EDS brand is finally going away.  The pioneering technology services company acquired last year by HP is officially becoming HP Enterprise Services.

The change is very symbolic.  HP is trading the legacy of EDS, which founded the information technology outsourcing industry 47 years ago, for the strength of its own brand.

HP is betting that enterprise customers will be drawn by the HP brand – even as they seek the kinds of legacy outsourcing services EDS has offered for years.  Moreover, the company is betting that it can retain the intellectual capital that made EDS such a leader in the outsourcing industry.

We hope it can.  Since the acquisition, more and more HP executives have taken on key leadership positions in the resulting organization.  HP has also restructured the EDS unit, reduced staff, changed compensation plans and generally is aligning processes and practices with those long in place at HP.
The changes don’t seem to have affected EDS operations or engagements, but we need to carefully monitor the long-term effects.  While we believe HP Enterprise Services has enormous potential and skill to help companies worldwide, success will demand that the company deliver consistently high-quality service.  That can only happen if the organization retains its most talented people.