Magazine article Workforce Management

HP-Eds Deal May Kick Excellerate into High Gear

Magazine article Workforce Management

HP-Eds Deal May Kick Excellerate into High Gear

Article excerpt

HR OUTSOURCING

Hewlett-Packard s acquisition of EDS may mean good news for ExcellerateHRO, the HR outsourcing joint venture between EDS and Towers Perrin.

On May 13, EDS and Palo Alto, California-based HP announced that HP would acquire EDS, the technology company based in Piano, Texas, for $13.9 billion, or $25 per share.

Industry observers say the acquisition would provide new resources and potential clients for ExcellerateHRO. The venture was formed in 2005, but hasn't had many deals in the past three years, prompting many to wonder about its fate.

"There have been a lot of questions about how they are doing in the market," says Stan Lepeak, managing director of research with EquaTerra. But with HP's backing, ExcellerateHRO could be a much stronger player, experts say.

"It would give them a lot of investment in the company at a time when the market is very slow, and it will give them access to the HP infrastructure and client base," says Phil Fersht, an analyst at AMR Research

The merger would also give HP the partner in HR outsourcing that it has been seeking, analysts say. …

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