HP and Fiat have signed a 5-year agreement to supply support services to some 16,000 workstations for the Fiat Group. As part of the deal, HP's subsidiary Distributed Computing Services will take over Fiat's Pdl Services unit, which provides help desk and asset management services and which employs about 60 people. Financial details of the operation have not been disclosed. The two companies signed the memorandum of understanding at the end of 2005, and the deal was authorised by the local antitrust authority Autorità Garante della Concorrenza e del Mercato in February.

"This move by Fiat fits with its divestment strategy from non-automotive businesses - just see the disposal of Atlanet and GlobalValue, and indeed its BPO operation Gesco being sold to Gruppo Reply in May 2005," says Angelo Romagnoli at Ovum, who advise on the commercial impact of technology and market changes in telecoms, software and IT services.
 

"These industrial divestments offer IT services players the opportunity to acquire some attractive businesses. HP has bought a company whose revenues round up to something less than €10m yearly (coming entirely from Fiat), but it's quite reasonable to expect that in a five-year period earnings from the operation will prove profitable and may well grow, assuming that the expenses involved in transforming Pdl Services into a genuine non-captive business are not overwhelming. It looks like HP Italia deserves a nod for this move," he adds.

Feature courtesy of Ovum