DALLAS -- Ben Trowbridge, CEO of Alsbridge, Inc., an award winning
global outsourcing advisory firm, released the following statement
today about the HP acquisition of EDS:
"Now that Hewlett Packard has completed its acquisition of EDS there
are many more questions that arise, such as how this will impact the
outsourcing industry.
Prior to the acquisition, it was unclear who made up the tier-one
outsourcing list with IBM having a large lead in market share. Now,
HP/EDS shifts the commercial dynamic, narrowing the playing field to
two tier-one mega outsourcing providers. This new combination of
tier-one providers leaves all the other providers racing for their
share of market definition and a share of the biggest of outsourcing
contracts. Look for more information on relative market share posted
here ( http://www.alsbridge.com/news-events/images/hp_eds_2008.pdf).
Moving forward, core questions include: will the new tier-one players
change the price points for buyers? Who will be the next player to be
acquired? And, will it have a positive impact on price and choices for
executives going through the process of considering outsourcing? Good
or bad? Time will tell.
I do believe that it is possible to see an increase in prices. This
will mean every company should be reviewing their options and be ready
for this new tier-one structure in technology outsourcing contracts.
This change is refreshing to an otherwise mature industry. The change
in the competitive landscape will be good for the industry in the long
run. However, in the short term, I believe buyers need to think
through the full impact on the competitive vendor landscape. The
choices are clearly not the same for buyers as it will be for the
providers. The old rules of thumb on outsourcing are now headed in new
directions."
For more information or to schedule an interview, contact Jo Trizila
at 214-232-0078.
To read more about Trowbridge and the HP/EDS deal, please read Will EDS's
tough boss fit in?
(http://www.alsbridge.com/news-events/archives/wsj_05_14_08.html)
and EDS: Can-do from the get-go
(http://www.alsbridge.com/news-events/archives/eds_05_18_08.html).
About Ben Trowbridge, CEO, Alsbridge, Inc.
Best known as a thought leader in the evolution of outsourcing, Ben
Trowbridge, offers more than 20 years of diversified global expertise
in hundreds of outsourcing, shared services and offshore transactions
as a consultant and buyer executive. His experience includes leading
the strategy and business case development process for senior
executives in a variety of industries. Additionally, he led the
business case development for restructuring the SG&A costs for seven
major private equity transactions valued at over $13 billion. Prior to
forming Alsbridge, Trowbridge served as managing partner for Ernst &
Young's Outsourcing Services Business and COO for their Global
Outsourcing Business.
About Alsbridge, Inc.
Alsbridge, Inc. is an award winning global advisory firm, providing
unbiased advice and assistance on outsourcing, shared services and
benchmarking. Alsbridge consultants bring extensive vertical industry
expertise and a practical knowledge of all areas within information
technology and business process outsourcing. Alsbridge's proven
methodology incorporates proprietary collaborative sessions, bringing
together executive teams from both the client and the provider in an
environment that fosters success. Alsbridge supports its
recommendations and assistance through significant investments in
proprietary benchmarking and ongoing research within the industry. For
more information, visit http://www.alsbridge.com.
