Tom Field: Hi, welcome to HP's executive podcast series in which we'll discuss trends in business technology. I'm your host Tom Field of CIO Magazine and today we're joined by John McCain, senior vice president and general manager of HP Services. John, thank for joining us today.
John McCain: Thanks very much Tom. It’s good to be here.
TF: John could you start of by telling me a little bit about HP Services. I understand this is one of the best kept secrets within HP.
JM: How about that. Well let's see, we are about a $16 billion unit within HP today. We are approximately 17 percent of the company's overall revenues and about 20 percent of the profits. Today we have operations in about 170 countries and I have about 70,000 professionals on the team.
When I compare myself to the competition we're about the fourth largest IT services provider in the world. Our target customer marketplace is the Global 2000 and I serve pretty close to 100 percent of the Fortune 100 today. We also support, in part of our businesses in the technology services, the small and medium business place today. Our workforce and revenues come from all over the world and I have about 30 percent of my 70,000 professionals in offshore locations today.
The business is divided into three global lines of business. Our technology services business, which we're really well known for, and our break fix business is about half of my business. Then I have two groups that make up my professional services business. One is the consulting and integration business and the other is our outsourcing services business.
TF: What would you say is HP's services strategy, if you were to narrow it down to that?
JM: So we've been working on our strategic framework, Tom, for the past year and refining it. And we've actually built a framework that has us focused on, I'll say, four priority areas. One is our portfolio area and I'd like to talk to you about it a little bit more. Second is our go-to-market strategy; third is our delivery and infrastructure work; and the fourth area is our cost structure optimization work.
And when you look inside of each we've got a number of initiatives that kind of support those four strategic priorities. And they're all centered on our mission, which is to help our customers manage and transform their IT environments to really drive business outcomes.
When I look inside the portfolio area, it's really trying to better productize our solutions so we can differentiate our offerings in the marketplace; really add some value. In our sales priority activity I'm working on better industry consulting and market basing executives to help us drive content and accelerate our growth in the marketplace.
In the delivery area we're investing hundreds of millions of dollars of capital today in continuing to modernize our infrastructure. That's from our processes and tools all the way through our data centers and call centers.
On the cost structure area we're a large services organization, so we're always continuing to work on our cost structure. Really so we can variabalize as much of it as possible and lower our cost structure so we can compete more aggressively in the marketplace.
TF: John, within this strategy, what would you say are some of the specific problems that customers are coming to HP Services and asking you to help them solve?
JM: I would say in terms of problems, CIOs first of all are my primary customer. And today they are faced with two challenges. One is from their CFO bosses. Quite often they get a lot of pressure in terms of reducing costs or improving the operational efficiencies within their own four walls.
But on the other side of the table they get a lot of pressure from their business unit customers to help them drive growth and really improve business processes. I'd like to think HP Services is in a great position to really help them bridge that gap.
TF: John there's a lot of talk now within HP about business outcomes. How can HP Services help customers achieve better business outcomes?
JM: Well I think we're in a really good position because we're a large scale services organization. We have a lot of experience in the past couple of decades in building it out.
I've got a very large consulting team that's got a lot of depth and expertise around specific industries and technologies. We've got a nice unique model where we're delighted to provide customers consulting, outsourcing or just support service, so we can line up however they need us to work with them.
TF: Now I'm sure there's not any one way, but could you detail how HP Services does work with these customers?
JM: I've had a chance to work for a couple of very large competitors of HP Services in the past ten years. And I think what really sets us apart in HP and HP Services is just the general collaborative nature of our employees. So we're a very engineering intense kind of culture and we're very collaborative in terms of trying to work with the customers. I think it really sets us apart in how we show up in the marketplace today.
TF: John we talked about HP Services and the strategy and about business outcomes. So if there one thing you want people to bear in mind when they're thinking about HP Services, what would that be?
JM: Well I'd like them to understand that we've got great depths and skills from our industry capabilities. We've got a very nice portfolio of services whether it's application, whether it's infrastructure or whether it's information management along to our outsourcing and support businesses.
So we are, as you mentioned earlier, we're a well-kept secret in the marketplace today, but still fourth largest. So my request is give us an opportunity and we will exceed their expectations.
TF: Well John the secret is out now. I want to thank you for your time and your insight today.
JM: Thanks very much Tom.
TF: Listeners I want to thank you for tuning into this podcast.
To learn more about how HP is delivering technology for better business outcomes visit www.optomizetheoutcome.com . For HP, I'm Tom Field. Thank you.
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