Hewlett-Packard Co. said Friday it opened its second call center and outsourcing facility in San Jose, Costa Rica, and thatit plans to nearly double its work force in the country to more than 6,000 employees by 2008.
H-P said the new facility will handle call-center operation and business process, payroll, financial and accounting services.
The company said its current Costa Rican operations handle more than 70,000 calls a day. The Center there is one of eight used by HP around the world.
Published August 18, 2006 by the Silicon Valley/San Jose Business Journal
dimanche 20 août 2006
jeudi 3 août 2006
HP's Israeli Investment
Forbes :
Hewlett-Packard's decision to purchase Mercury Interactive, the Israeli-American business-software developer, for $4.5 billion will turn Mercury's R&D center in Israel into HP's largest software development center worldwide. It's the company's largest acquisition since it bought Compaq Computer for $18.9 billion in 2002.
But it seems that the 700 new HP employees in Israel may have a reason for concern, at least if they were to consult their colleagues in HP Israel, the local division of global HP. Forbes Israel reports that in March, HP fired 15 senior executives in its Israeli division, including Chief Executive Gil Rosenfeld after it suspected they ran a gray market--exporting servers that should have been sold only in Israel to other countries for a higher profit. After investigations, hearings and legal fights, HP backed off and cleared Rosenfeld's name. However, Rosenfeld decided not to return to the company, leaving the division in turmoil.
Now, HP Israel's employees are in a panic. They refuse to talk, afraid of eavesdropping and denunciation, while checking other employment opportunities. In April, HP's server sales in Israel dropped 40%, and clients claim that sales might continue to drop in the next quarters. Still, HP says that the quarterly results of the Israeli division match its expectations.
According to information that was leaked to reporters, HP Israel was accused of illegitimately exporting 30,000 servers--half of the total amount imported to Israel each year--for $50 million. By running this kind of gray market, HP Israel could benefit, for example, from the higher price of the servers among foreign trading partners, and from the differences in exchange rates. However, while HP Israel gains, the local HP distributor in the destination country loses, and so does the parent company, whose global sales plans are foiled.
Rosenfeld was fired during lunch. His pink slip was sent to his iPAQ while he was dining with a CEO of a major Israeli company. "Dear Gil," the message on his iPAQ read. "As you know, during the last weeks we conducted an investigation…and found evidence that tie you to severe violation of company procedures....Due to the findings, HP considers to terminate your employment with the company." Rosenfeld denies any gray market activity in the Israeli division. "HP was misled--it was victimized," he says. "I'm not looking for revenge, and I don't want to talk against HP. It was my home for 18 years. I loved it, and I still love it."
The exact details of the investigation were never publicly disclosed, but toward the end of 2005, and perhaps earlier, HP received complaints about gray-market activity in its Israeli division. The complaints may have been lodged by executives of other HP divisions in Europe, and possibly, as Rosenfeld implies, they were lodged by local workers who were seeking ways to hurt him after he laid them off. "People were looking for revenge," he says.
In mid-February, a team of American and British investigators landed in Israel. For five weeks, they interrogated employees and searched for evidence in files and computers. Some employees claim that the investigators even monitored their calls. The probe eventually found its way into the Israeli media. Newspapers were given details on what the team of investigators was seeking. "The team will investigate senior officials in the local division due to suspicions about severe violations of the company's procedures," wrote Maariv, Israel's second-largest newspaper. "If the suspicions will be realized, some senior officials in HP Israel might lose their jobs."
And they did. But Rosenfeld decided not to give up without a fight. "Getting the pink slip was the shock of my life," he says. "I decided to fight the company I love to clear my name. I was angry, and my family helped me a lot. My legal counsel was Tamar Golan, who is my mother-in-law, and together with my wife and father, we created a think tank. We worked day and night. It was an amazing team effort."
HP refused to present Rosenfeld with the investigation's findings, and the case arrived in Israel's labor court. The court ruled that HP should present the report to Rosenfeld and the other executives whose jobs were terminated. Those who've read the report under a pledge not to disclose its contents are able to testify about what it doesn't contain--any real evidence against the executives.
After a mediation process, Rosenfeld was cleared of any suspicion, though the situation of the other executives dismissed at the same time remains unclear. HP released a statement asserting that it had never cast any doubt on Rosenfeld's integrity, nor his achievements, and regretted the misleading media coverage that was made without its knowledge or consent.
The crisis between Rosenfeld and HP lasted exactly one month, from March 23 to April 23. Then, Rosenfeld decided to leave the company. "It was the right thing to do," he says.
Rosenfeld says HP should now take care of its employees. "The workers in Israel are an amazing group of people of superb quality. The only thing that the company needs to do now is to pet the workers, the clients and the market. The company needs a leader who is a 'man of heart,' because the damage is emotional, not rational."
HP's comment: "The company never discloses information about investigations related to its business regulations."
Hewlett-Packard's decision to purchase Mercury Interactive, the Israeli-American business-software developer, for $4.5 billion will turn Mercury's R&D center in Israel into HP's largest software development center worldwide. It's the company's largest acquisition since it bought Compaq Computer for $18.9 billion in 2002.
But it seems that the 700 new HP employees in Israel may have a reason for concern, at least if they were to consult their colleagues in HP Israel, the local division of global HP. Forbes Israel reports that in March, HP fired 15 senior executives in its Israeli division, including Chief Executive Gil Rosenfeld after it suspected they ran a gray market--exporting servers that should have been sold only in Israel to other countries for a higher profit. After investigations, hearings and legal fights, HP backed off and cleared Rosenfeld's name. However, Rosenfeld decided not to return to the company, leaving the division in turmoil.
Now, HP Israel's employees are in a panic. They refuse to talk, afraid of eavesdropping and denunciation, while checking other employment opportunities. In April, HP's server sales in Israel dropped 40%, and clients claim that sales might continue to drop in the next quarters. Still, HP says that the quarterly results of the Israeli division match its expectations.
According to information that was leaked to reporters, HP Israel was accused of illegitimately exporting 30,000 servers--half of the total amount imported to Israel each year--for $50 million. By running this kind of gray market, HP Israel could benefit, for example, from the higher price of the servers among foreign trading partners, and from the differences in exchange rates. However, while HP Israel gains, the local HP distributor in the destination country loses, and so does the parent company, whose global sales plans are foiled.
Rosenfeld was fired during lunch. His pink slip was sent to his iPAQ while he was dining with a CEO of a major Israeli company. "Dear Gil," the message on his iPAQ read. "As you know, during the last weeks we conducted an investigation…and found evidence that tie you to severe violation of company procedures....Due to the findings, HP considers to terminate your employment with the company." Rosenfeld denies any gray market activity in the Israeli division. "HP was misled--it was victimized," he says. "I'm not looking for revenge, and I don't want to talk against HP. It was my home for 18 years. I loved it, and I still love it."
The exact details of the investigation were never publicly disclosed, but toward the end of 2005, and perhaps earlier, HP received complaints about gray-market activity in its Israeli division. The complaints may have been lodged by executives of other HP divisions in Europe, and possibly, as Rosenfeld implies, they were lodged by local workers who were seeking ways to hurt him after he laid them off. "People were looking for revenge," he says.
In mid-February, a team of American and British investigators landed in Israel. For five weeks, they interrogated employees and searched for evidence in files and computers. Some employees claim that the investigators even monitored their calls. The probe eventually found its way into the Israeli media. Newspapers were given details on what the team of investigators was seeking. "The team will investigate senior officials in the local division due to suspicions about severe violations of the company's procedures," wrote Maariv, Israel's second-largest newspaper. "If the suspicions will be realized, some senior officials in HP Israel might lose their jobs."
And they did. But Rosenfeld decided not to give up without a fight. "Getting the pink slip was the shock of my life," he says. "I decided to fight the company I love to clear my name. I was angry, and my family helped me a lot. My legal counsel was Tamar Golan, who is my mother-in-law, and together with my wife and father, we created a think tank. We worked day and night. It was an amazing team effort."
HP refused to present Rosenfeld with the investigation's findings, and the case arrived in Israel's labor court. The court ruled that HP should present the report to Rosenfeld and the other executives whose jobs were terminated. Those who've read the report under a pledge not to disclose its contents are able to testify about what it doesn't contain--any real evidence against the executives.
After a mediation process, Rosenfeld was cleared of any suspicion, though the situation of the other executives dismissed at the same time remains unclear. HP released a statement asserting that it had never cast any doubt on Rosenfeld's integrity, nor his achievements, and regretted the misleading media coverage that was made without its knowledge or consent.
The crisis between Rosenfeld and HP lasted exactly one month, from March 23 to April 23. Then, Rosenfeld decided to leave the company. "It was the right thing to do," he says.
Rosenfeld says HP should now take care of its employees. "The workers in Israel are an amazing group of people of superb quality. The only thing that the company needs to do now is to pet the workers, the clients and the market. The company needs a leader who is a 'man of heart,' because the damage is emotional, not rational."
HP's comment: "The company never discloses information about investigations related to its business regulations."
mardi 25 juillet 2006
Mercury Interactive, its profits in retrograde, will be bought by H-P
San Francisco Business Times :
HP said today it will spend about $4.5 billion to buy Mercury Interactive Corp., a business software maker that recently changed its reported 2003 profit to a loss.
H-P will pay $52 a share in cash for Mountain View-based Mercury
Palo Alto-based H-P, which has 150,000 employees, said the deal will increase annual sales at its software unit to $2 billion. After a tender offer for all outstanding Mercury shares, Mercury will merge with an H-P unit. The deal should close in the fourth quarter of 2006.
H-P did not address Mercury's status with the Securities and Exchange Commission. The SEC said earlier this month it might file civil charges against company directors.
In early July, Mercury restated financials for fiscal years 2002, 2003 and 2004, reporting about $566.7 million less in income than previously posted. The restatement reversed Mercury's reported 2003 profit of $41.5 million into a loss of $62.6 million. For 2002, the company cut its profit of $65 million to $37 million; for 2004 from $84.6 million to $53.7 million.
Mercury said its legal and accounting bill for the cleanup is likely to be around $70 million.
Mercury at a Glance :
CEO and President = Tony Zingale
Year Founded = 1989
Revenue 2004 = $685.5 Million
Number of Employees = 2,659
Worldwide Offices = 26
http://www.mercury.com/us/company/corporate-info/contact-us/ww-contacts/
HP said today it will spend about $4.5 billion to buy Mercury Interactive Corp., a business software maker that recently changed its reported 2003 profit to a loss.
H-P will pay $52 a share in cash for Mountain View-based Mercury
Palo Alto-based H-P, which has 150,000 employees, said the deal will increase annual sales at its software unit to $2 billion. After a tender offer for all outstanding Mercury shares, Mercury will merge with an H-P unit. The deal should close in the fourth quarter of 2006.
H-P did not address Mercury's status with the Securities and Exchange Commission. The SEC said earlier this month it might file civil charges against company directors.
In early July, Mercury restated financials for fiscal years 2002, 2003 and 2004, reporting about $566.7 million less in income than previously posted. The restatement reversed Mercury's reported 2003 profit of $41.5 million into a loss of $62.6 million. For 2002, the company cut its profit of $65 million to $37 million; for 2004 from $84.6 million to $53.7 million.
Mercury said its legal and accounting bill for the cleanup is likely to be around $70 million.
Mercury at a Glance :
CEO and President = Tony Zingale
Year Founded = 1989
Revenue 2004 = $685.5 Million
Number of Employees = 2,659
Worldwide Offices = 26
http://www.mercury.com/us/company/corporate-info/contact-us/ww-contacts/
mardi 20 juin 2006
HP to combine functions in ongoing restructuring
June 20 (Reuters) - Hewlett-Packard Co. said on Tuesday it will further streamline its business by combining some operations. Supply Chain, Procurement, Logistics, Order-Fulfillment, Related Functions to be Fully Integrated Into Businesses !
vendredi 19 mai 2006
France : final agreement reached in the multi-union negotiations
HP in France will be quite peaceful in the next 18 months as a final agreement has been reached in front of the 3 working councils with most of the 5 unions, puting an end to the largest social conflict ever for this company.Worforce Reduction will start third week of July, and about 900 employees (17% of staff) are expected to leave on a voluntary basis until end of 2007. It could be more with new talks coming July 10th after knowing how many employees want to leave exactly.
mardi 25 avril 2006
HP CEO Hurd cashes in options
Mercury News
Mark Hurd took advantage of his one-year anniversary as chief executive of Hewlett-Packard earlier this month to cash in on the run-up in HP's share price when the first third of a 400,000-share restricted stock grant, given when he was hired, officially became his. The 400,000 shares were worth $8.68 million on the day they were granted at the beginning of April 2005, when HP shares closed at $21.71. A year later their value had grown by more than half to nearly $13.2 million. A third of them became Hurd's on April 1, and he promptly sold 58,081, or nearly 44 percent of the shares back to Hewlett-Packard for $1.9 million to cover taxes. Two days later he sold 25,000, or a third of the remaining shares, on the open market for $33.57 each, or $839,168.Hurd set up an automatic trading plan March 7 under the Securities and Exchange Commission's 10b5-1 rule, which allows executives to sell a set number of shares over a predetermined amount of time. (Executives have increasingly adopted such plans to avoid questions about the timing of their stock trades.)
Hurd, who got a $2 million signing bonus when he was hired and $2.75 million to help him relocate from Ohio, was also granted an option to buy shares at $21.73, including 700,000 shares that vest annually over four years, and 450,000 shares that vest in thirds over three years. (The grant for 450,000 shares was given to make up for compensation he forfeited from his previous employer, NCR.) When the 1.15 million options were granted in 2005, HP estimated their value at $6.2 million. The 28 percent of the options that are now Hurd's to exercise were worth $3.5 million at last week's closing price of $32.62. That's more than half of the estimated value of all the options when they were granted.
Also cashing in recently was HP's chief financial officer, Robert Wayman, who made nearly $2 million the first week of March when he exercised his right to buy 175,000 shares at $21.75 each and then sold them at prices ranging from $32.84 to $33.10.Wayman, who has been the company's chief financial officer since 1984, served as its interim chief executive following Carly Fiorina's firing in February 2005 until Hurd's arrival in April of that year, and received an extra $3 million cash payment for his efforts.
Mark Hurd took advantage of his one-year anniversary as chief executive of Hewlett-Packard earlier this month to cash in on the run-up in HP's share price when the first third of a 400,000-share restricted stock grant, given when he was hired, officially became his. The 400,000 shares were worth $8.68 million on the day they were granted at the beginning of April 2005, when HP shares closed at $21.71. A year later their value had grown by more than half to nearly $13.2 million. A third of them became Hurd's on April 1, and he promptly sold 58,081, or nearly 44 percent of the shares back to Hewlett-Packard for $1.9 million to cover taxes. Two days later he sold 25,000, or a third of the remaining shares, on the open market for $33.57 each, or $839,168.Hurd set up an automatic trading plan March 7 under the Securities and Exchange Commission's 10b5-1 rule, which allows executives to sell a set number of shares over a predetermined amount of time. (Executives have increasingly adopted such plans to avoid questions about the timing of their stock trades.)
Hurd, who got a $2 million signing bonus when he was hired and $2.75 million to help him relocate from Ohio, was also granted an option to buy shares at $21.73, including 700,000 shares that vest annually over four years, and 450,000 shares that vest in thirds over three years. (The grant for 450,000 shares was given to make up for compensation he forfeited from his previous employer, NCR.) When the 1.15 million options were granted in 2005, HP estimated their value at $6.2 million. The 28 percent of the options that are now Hurd's to exercise were worth $3.5 million at last week's closing price of $32.62. That's more than half of the estimated value of all the options when they were granted.
Also cashing in recently was HP's chief financial officer, Robert Wayman, who made nearly $2 million the first week of March when he exercised his right to buy 175,000 shares at $21.75 each and then sold them at prices ranging from $32.84 to $33.10.Wayman, who has been the company's chief financial officer since 1984, served as its interim chief executive following Carly Fiorina's firing in February 2005 until Hurd's arrival in April of that year, and received an extra $3 million cash payment for his efforts.
vendredi 21 avril 2006
H-P hires Disney HR boss
Hewlett-Packard Co. said Friday it hired John Renfro, head of human resources at the Walt Disney Co., to run the HR department at its imaging and printing division.
Renfro will serve as vice president and report to Marcela Perez de Alonso, executive vice president of human resources for HP, and to Vyomesh Joshi, executive vice president of IPG.
Renfro will be responsible for improving organizational effectiveness, developing high-performance teams and delivering world-class HR programs for IPG, which reported revenue of $25 billion in FY2005.
Renfro, 46, joins HP after four years at Disney, where he served as senior vice president and chief human resources officer reporting to Robert Iger, president and chief executive officer. Previously, Renfro ran the human resources function at Gateway and Zenith and held senior HR positions at Ameritech and A.C. Nielsen, a division of Dun & Bradstreet.
Renfro will be based in San Diego and will join HP effective May 17.
Renfro will serve as vice president and report to Marcela Perez de Alonso, executive vice president of human resources for HP, and to Vyomesh Joshi, executive vice president of IPG.
Renfro will be responsible for improving organizational effectiveness, developing high-performance teams and delivering world-class HR programs for IPG, which reported revenue of $25 billion in FY2005.
Renfro, 46, joins HP after four years at Disney, where he served as senior vice president and chief human resources officer reporting to Robert Iger, president and chief executive officer. Previously, Renfro ran the human resources function at Gateway and Zenith and held senior HR positions at Ameritech and A.C. Nielsen, a division of Dun & Bradstreet.
Renfro will be based in San Diego and will join HP effective May 17.
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