Mark Hall's picture
Mark Hall

On the Mark

HP to slash internal IT operations

One of the most interesting observations in our online coverage of the restructuring announced to day at Hewlett-Packard was from Richard Ptak of Ptak & Associates. He said that because the layoffs target HP's own IT organization some might construe the headcount cuts as, at best, ironic given that "the head of a technology company with products and services focused on making IT relevant is saying HP has a lot of fat in its own IT organization. I'm bothered by the message that sends."

 

Me, too. Not because HP's IT organization is bloated, but because HP has not said where the bloat is located. I'm bothered because HP has not made clear what jobs and projects inside HP's IT department are at risk. If I'm an HP customer or part of the company's B2B supply chain and I'm dependent on one or more aspect of its IT operations, I want to know ASAP whether anything I depend on is on the chopping block. That's what bothers me most. I'm guessing more than a few HP users and partners are calling their contacts inside HP right now to learn their fate. I'm betting "I don't know" is the answer most of them are hearing. And that's the wrong answer.

 

CEO Mark Hurd said in a conference call after the announcement, "We love IT." But he added, "We have to be more selective about the number of [IT] projects that we would put on the plate." And, he concluded--listen closely--"We will take some work out of the system that is not mission critical to the enterprise."

 

Is your project considered "mission critical" to HP? Just because it's mission critical to your organization, does not mean it passes the same test for HP. You need to find out. Real soon.

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