HP denies Coles Myer deal in jeopardy over India

By Andrew Colley
15 August 2003 02:30 PM
Tags: h-p, outsourcing, hewlett-packard, call, india, centre, myer, col
Hewlett-Packard Australia has moved to quash claims that its relationship with retail heavyweight Coles Myer had been strained to the point of breaking by the tech company's decision to relocate its frontline support to India.

HP Services chief Philip Attard said the company's relationship with Coles Myer was solid and that the transition to India was proceeding as scheduled.

Attard's comments follow reports in Internet publication The Inquirer last week that Coles Myer may have canned its contract with HP, due largely to the outsourcing of support to India and difficulties in achieving service standards laid down in service level agreements between the retailer and the technology heavyweight.

"There's absolutely no ounce of truth in any of those allegations," said Attard.

However, Attard was unable to comment on how the company's client base had received the move, saying it was too soon to produce reliable numbers on customer satisfaction since switching to the Bangalore-based support operation.

The allegation surfaced amid claims that HP had been forced to re-employ staff it had sacked after outsourcing parts of its support operation to India.

But Attard refuted suggestions that the company had been forced to re-hire staff. Attard said that HP had extended contracts of support staff with particular skill sets that had fallen into short supply due to recent "fluctuations" in client demand.

Attard claimed the situation was "good news" for the company and for its Australian staff.

However, well-placed sources told ZDNet Australia the transition to India hadn't run quite as smoothly as HP claims.

According to one source, HP's call clearing rates at the centre had dropped significantly since switching to the Bangalore operation -- which is run by Digital Globalsoft, a company 51 per cent owned by HP -- due to technical and logistical oversights. The source claimed HP had hired Indian workers to replace Australian workers at a ratio of two to three and that it had not purchased enough bandwidth to support its remote service applications.

The source added that HP had over-estimated the capabilities of the Indian workers, many of whom have advanced tertiary qualifications.

However, Attard said any judgments of its outsourcing partners' human resources based on comparisons of previous staffing levels at its local support operation were immaterial given that the Bangalore operation serves a number of countries, not just Australia. However he conceded that a representative from HP Australia "may have" been charged with the task of recreating the local support operation at the Digital Globalsoft facility.

Attard denied that the operation was facing any bandwidth problems, saying that the support operations' drag on HP's global network resources -- which support some 115,000 users -- was insignificant.

HP is still investigating claims that the centre is clearing calls from Australian clients at lower rates than predicted.

Advertisement

Talkback 2 comments

    Another smudge on HP's collar ...Anonymous -- 16/08/03

    Another smudge on HP's collar is their refusal to withdraw support for industry pariah SCO.

    http://news.com.com/2009-1088_3-984352.html

    HP should never underestimate the long memories of technical people. Marketers change allegiances with every cheque they receive. Companies have no scruples and no ethics. But technical people will still be there to suggest clients buy IBM or DELL product to run Linux on, in lieu of HP, for many years to come. HP's strategists should take note.

    So should Sun's.

    Is this the pot calling the ke ...Anonymous -- 19/08/03

    Is this the pot calling the kettle black?

    If there was any truth in Coles Myer rethinking their contract with HP due to HP moving support to India, CM would be somewhat hypocritical.

    If you have a Coles Myer store credit card, try ringing their enquiry line. It's answered by GE capital finance - in their Indian call centre.

Add your opinion

Latest Videos

Sponsored content

Power Centre - Content from our premier sponsors

Blogs

  • Chris Duckett Get extensions going in Firefox, redux
    Previously on Null Pointer we looked at getting extensions working in Firefox betas, and that was great until the fine folks at Firefox changed their minds.
  • Array How reliable is IP telephony?
    Have you ever heard a weird kind of hissing, crackling or popping noise when calling someone on an IP telephony line? How rare is the phenomenon these days?
  • Array Forget the NBN, 100Mbps is already here
    Telstra and TransACT will shortly begin offering 100Mbps broadband to many customers. By moving early, the companies have not only raised the bar for Australia's broadband services, but thrown down a challenge to a government that now faces increased pressure to deliver the NBN as promised.
  • More blogs »

Tags

Back to top

Featured