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July 8, 2007

HP to Tap outsourcing growth
An international business solutions company is intent on aligning itself with the robust growth of the Philippines’ business process outsourcing (BPO) industry.

Chin-Teik See, Hewlett-Packard (HP) personal systems group general manager and vice-president for Southeast Asia and Taiwan, said the company is willing to build the information technology (IT) infrastructure needed by BPO firms for them to improve their business operations in the country.

See said HP has acknowledged the growth of the BPO sector which is among the pillars that drive the economic growth for the Philippines.

“We have seen the demand for our commercial products like desktops and notebooks especially in the call center business,” he said.

In their visits with call centers both in Manila and Cebu, HP Philippines has been getting inquiries for additional purchase of PCs and notebooks, among others, since many call center firms are now on an expansion mode, See said.

He said about 40 to 50% of its clients come from the call center industry.

See said HP Philippines is also confident its efforts to expand its market in Cebu will be fruitful as the company sees the potential of the province to grow as a tourism and business destination.

“We believe that business in Cebu is growing fast, with a lot of foreign investors coming in. HP is committed to delivering the reliable and cost-effective IT infrastructure and solutions to meet the region’s growing business needs,” he said.

The country’s BPO industry is targeting to generate some US$ billion this year and employ around 400,000 Filipinos.

In line with this development, HP Philippines opened July 3 the HP Solution Center which showcased various IT solutions and services for small and medium businesses involved in call centers, animation, and internet cafes.

The solution center, considered to be the first in the Philippines, is located in Ayala Center Cebu’s new wing.

Larry Devera, HP-Philippines solution partner organizations country director, earlier described the facility as a venue for customers to witness the “interplay” of the hardware and software components.

HP Solution Center is being managed by the Ng Khai Development Corp.

To expand their partnership with Cebu-based retailers and companies, HP also announced the opening of its HP Store in SM City Cebu, which is the first in the Visayas.

According to See, HP Philippines is accelerating its effort to reinforce and strengthen its engagements beginning this year aided by their basic building strategies.

In his presentation, See identified efficiency, expansion, innovation, product design and inspiration as among its pillars that will drive further the growth in terms of market share in the country.

In terms of innovation, See said the company has allocated funds for research and development in producing designs geared towards security and manageability.

Citing official records, See said HP Asia Pacific has a record cash flow of US$4 billion in the second quarter of the year, generated by contributions from the printing, imaging, personal systems group, service group, and other HP services sites.

The company’s net income in the same period reached US$2.9 billion with a 13% year on year growth.

“We hope to see Asia Pacific grown in revenue size since IT business today is bullish in the region,” See said. PNA

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