Offshore workers to replace Hewlett Packard’s local teams

Hewlett Packard Enterprise (HPE)’s decision to spin off its troubled services business could mean 60% of its personnel in the US and Europe would be replaced by new workers in lower-cost labor markets, including the Philippines. HPE said it will spin of its long-troubled services unit and merge it with the IT services firm CSC in a deal worth about USD8.5bn. The new company, temporarily named Spinco, will be a dedicated player in the low-margin, IT outsourcing market, the company said. HP CEO Meg Whitman earlier said 60% of HPE’s services personnel would be replaced by new workers in offices in the Philippines, Bulgaria, India and Costa Rica by 2018.