Making it work--HP and EDS

I've intentionally stayed out of the fray regarding the proposed combination of HP's service business and EDS to see what sort of reactions it would generate.

Looking at this from a customer perspective, I would think that two key areas will be at the top of mind for most client executives.

Firstly, execution. Clients need to trust their service providers to deliver complex processes reliably and consistently over extended periods of time. While we all understand that there can be bumps in the road when two groups combine, clients will be looking to not have to suffer execution problems, especially those that could impact their business.

Secondly, culture. It's so often overlooked or considered a secondary issue but the cultural fit between a client and a service provider is a key element of an ongoing successful relationship. We readily accept that each company has a corporate culture and that some individuals don't fit with a company because of clashes with that culture. The tight inter-dependency that can exist with complex services delivered by external parties means that cultural fit is just as relevant in that context.

What will the corporate culture of a combined HP and EDS look like? Whatever it is, it will fit even better for some existing clients and unfortunately less well for others. How HP and EDS adjust to that will likely be a key determinant of their future success.

Stealing an analogy used by a service provider who competes with these firms, people aren't expecting this combination to produce a gazelle but the other service providers worry that it may produce a T-Rex--fast enough, big enough and powerful enough to make a significant change in the industry.

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Michael Rehkopf

Michael has more than 20 years of experience in operations, strategy and sourcing covering all major parts of the globe. He has also worked for Australian, Canadian, German and Japanese companies in both business process outsourcing and IT outsourcing.
Michael's industry experience includes the financial services, manufacturing, telecommunications and travel sectors. He leverages this diverse industry experience and his university background in accounting, IT and his Master of Dispute Resolution, to assist clients in the development of business strategies and the implementation of sourcing strategies. These include the associated evaluation, negotiation and organizational change.
Michael is currently a partner at TPI, the world's oldest and largest sourcing advisory firm. Prior to joining TPI, Michael held leadership positions with Siemens Business Services, OpenPlus International, Mitsubishi Electric and Netron.