Menu
HP reports $27m loss in NZ

HP reports $27m loss in NZ

Revenue falling 10 percent to $736 million

Hewlett-Packard's New Zealand subsidiary has had another year to forget, with revenues falling 10 percent to $736 million and its annual loss ballooning from $10m to $27m.

The world's biggest computer maker merged with EDS, whose Wellington-based subsidiary was the dominant provider of information technology services to the Government, in 2009, but has since suffered a series of setbacks.

The results for the year to October suggest the company has lost more than a quarter of its combined pre-merger workforce of 2900. Its wage bill for the year fell $17.4m to $149.9m.

Hewlett Packard New Zealand would not comment on the results because of "HP disclosure policy".

Fonterra partly unwound its $590m outsourcing deal with the company in 2009, instead hiring Indian company HCL to develop and maintain much of its software. The dairy giant said the era of big all-encompassing outsourcing deals was over.

Telecom last year largely binned a $1 billion outsourcing deal with EDS in 2000 and does the work in-house. It said later the decision had been a big contributor to its cost-cutting drive.

Hewlett-Packard shelved a $60m data centre in Tuakau after it lost out to Kiwi rivals Datacom and Revera as a supplier of outsourced shared infrastructure to the Government.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags HPNew Zealand

Events

Featured

Slideshows

Channel kicks 2021 into gear as After Hours returns to Auckland

Channel kicks 2021 into gear as After Hours returns to Auckland

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Pantry at Park Hyatt in Auckland to kick-start 2021.

Channel kicks 2021 into gear as After Hours returns to Auckland
The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Show Comments