H-P to Serve U.S Immigration Agency - Analyst Blog
11 März 2013 - 6:47PM
Zacks
Hewlett-Packard Co.’s (HPQ) Enterprise Services
unit was recently chosen by the U.S. Department of Homeland
Security Department to provide call-center support for its U.S.
Citizenship and Immigration Services (‘USCIS’) arm. The 5-year task
order will boost H-P’s cash balance by $220.5 million.
Per the contract, H-P will manage the entire task of developing a
call center platform, starting from recruiting and training
personnel, setting up questionnaires (expected queries from
prospective immigrants) and jotting down probable and satisfactory
answers for the queries. For these services, H-P will implement its
Customer Engagement Management Services.
H-P will also provide complete hardware support for the call
centers. The hardware will include ProLiant DL380 Generation 7
servers, MSR30-20 routers, 5500-48G-PoE EI switches, ProBook 6560b
notebook PCs powered by Intel Corp.’s (INTC)
processors and LaserJet M9040 multifunction printers.
H-P’s services will enable the U.S. immigration agency to serve new
immigrants better and faster.
Earlier this year, H-P managed to retain a federal contract worth
$543.0 million despite IBM Corp.’s (IBM)
protest.
Back in June 2012, a contract was announced by the federal agency
Department of Veterans Affairs. The 5-year wireless tracking
contract required the 90 competing companies to provide a
technology to reduce the number of lost equipment, monitor
sterilization of medical devices and identify patients receiving
recalled products.
H-P, considered to be the most competent one, was initially awarded
the contract. In response, IBM challenged the agency’s decision and
its evaluation process before the U.S. Government Accountability
Office (‘GAO’), the agency to resolve contract disputes.
The GAO held the Department of VA guilty of not evaluating the
proposal properly and ordered a re-run of the selection
process.
The re-evaluation process turned out to be positive for H-P as the
agency found H-P’s technological support to be the most
competent.
A win against IBM and the federal agency’s continued reliance on
its services is certainly a reason to cheer for H-P. Also, the
continuous deal wins from the federal sector are encouraging, but
the lower margins associated with the deals cap profitability.
Though further indication of PC market slump in 2013, declining
revenues and competition from Dell Inc. (DELL) are
concerns, back-to-back product launches and growing exposure into
enterprise storage space are encouraging.
Currently, H-P has a Zacks Rank #2 (Buy).
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