HP in Colombia
Brian Humphries
Growth Markets Organization
October 2011




© Copyright 2011 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice.
HP overview
    Industry’s broadest, most diversified
                                  FY10 REVENUE                                                             FY10 REVENUE
    portfolio                      BY SEGMENT                                                                BY REGION
      Imaging &                                                              Services                                     EMEA
    Printing Group                                                            27%                                          42%
          20%




                                                                                   Enterprise
                                                                                  Storage and
                                                                                    Servers
       Personal                                                                       14%                                   APJ
    Systems Group
                                                                  HP Software                   Americas                    20%
         32%
                                                                                                 38%
                                                         HPFS & Other 3%
                                                                   4%
2    © Copyright 2011 Hewlett-Packard Development Company, L.P.
     The information contained herein is subject to change without notice.
HP overview

                                              #1 or #2 in all core markets
Market leadership
                                              across consumer, SMB and enterprise

Winning portfolio                             Unique IP for hybrid cloud and connected world
Innovation &                                  Investments in research and development
technology                                    and new acquisitions
Global brand & reach                          Expanding coverage in 170 countries

Scale/supply chain                            Best-in-class cost structure

Financial strength                            Balance sheet and recurring profits

People                                        300,000+ talented people


3   © Copyright 2011 Hewlett-Packard Development Company, L.P.   The information contained herein
    is subject to change without notice.
The emerging markets opportunity
Contributing 40% of HP’s Total Addressable Market growth
               HP TAM (2010)                                                  Share of HP TAM growth
                100% = 1.2 T                                                    2010-2013 (forecast)

                                                     10%                          Emerging Markets
                             Emerging               CAGR
                              Markets                                                                                  HP in FY10
                                19%                                                           40 %
                              ($0.23T)                                                      (~$75B)    • Emerging Markets represented 21% of
                                                                                                         HP’s total revenues but 40% of HP’s
                                                                                                         revenue growth

                                                                                                       • HP revenues in Emerging Markets grew
            Developed                                                            Developed Markets       ~3x Developed Markets
             Markets
              81%
            (~$0.99T)                                                                         60%
                                                                                             (~$110
     4%                                                                                        B)
    CAGR


4   © Copyright 2011 Hewlett-Packard Development Company, L.P.   The information contained herein
    is subject to change without notice.
Growth Markets Organization (GMO)
HP has established the Growth Markets Organization to facilitate growth in
emerging markets




5   © Copyright 2011 Hewlett-Packard Development Company, L.P.
    The information contained herein is subject to change without notice.
Growth Markets Organization (GMO)

Leadership enablement                                Commercial enablement
Talent development; Graduate Hiring                        Multi-year business planning
Talent rotation                                                 Large deal sales support
Population pyramid management                           Solution & portfolio development
                                          20%
                                      (2x market)
                                      growth from
                                        FY12-15
Requisition process simplification                         Optimized functional support
Total rewards for emerging markets                  New entity openings and expansions
Small country operational model                                   Coordination of efforts

Process enablement                                  Infrastructure enablement
Global Location Strategy (GLS)
HP hired 50,000 new employees in 2010, of which 7,000 were placed in GMO
countries

              Global Talent                                   Cost Structure
  Talent availability                                Labor costs
  Education levels                                   Facility costs
  Universities                                       Incentives value




         Operations and Risk                              Business Opportunity

  Political environment                              Economic strength / IT market
  Labor relations                                    Partnerships with public
  Stability and security                             sector
                                                     Customer demand
The road to Medellin
HP’s location investment decision in Medellin was based on a precise selection
process that creates new economic value both for HP and Medellin

      Country                        • 3rd largest economy in Latin America (~USD $285 Billion in 2010)
       Growth                        • Favorable economic climate; GDP growing ~4.5% over next 5 years
      Potential                      • Large IT Market of ~$4.5B growing at ~9% annually


                                     • Market leader in printing, personal computers and IT services
    HP Market                          businesses
     Position                        • Broadest portfolio among competitors
                                     • Strong partner ecosystem across alliances, channels & distributors


       Fit With                      • Sizable country operations currently; poised for growth
        GMO                          • Key market in Latin America
       Strategy                      • Strong country leadership and talent base


8   © Copyright 2011 Hewlett-Packard Development Company, L.P.
    The information contained herein is subject to change without notice.
Early value and benefits
 HP’s partnership with Medellin and Colombia

FOR EMPLOYEES                                                                 FOR THE COMMUNITY
                                                                              Medellin IT reputation boosted by HP
Continuous education and development                                          presence

                                                                              Opportunity for significant job creation
World-class working environment
                                                                              University programs and graduate
                                                                              placement
Exposure to high-end technology
                                                                              Investment initiatives to support regional
                                                                              and national economic development
Competitive compensation and benefits                                         Local engagement to benefit Medellin
package                                                                       community

  9   © Copyright 2011 Hewlett-Packard Development Company, L.P.
      The information contained herein is subject to change without notice.
What’s possible
Building from HP’s Costa Rica experience

                                                                               2008-2011
                                                                               Maturation               • HP total capital investment
                                                2004-2007                                                 through August 2011 is $91
                                                Growth                                                    million USD
                                                                                 • HP starts R&D
2003                                                                               operations in 2009   • HP employment has injected
Startup                                                                          • Voted ‘Services        over $150 million USD into
                                                        • HP starts BPO
                                                                                   Exporter of the
                                                          operations in 2004                              the local economy since
                                                                                   Year’ in 2010
                                                        • Holds first HP Job
       • HP Shared
                                                          Fair in 2005
                                                                                 • Grows to 7,000         2005
         Delivery Services                                                         employees by July
         started in Costa                               • Grows to 5,500           2011                 • HP has created considerable
         Rica with 123                                    employees by Oct
         employees                                        2007
                                                                                                          additional employment in the
                                                                                                          broader IT ecosystem and
                                                                                                          support services
10   © Copyright 2011 Hewlett-Packard Development Company, L.P.
     The information contained herein is subject to change without notice.
HP and Medellin – Partnering for the Future


Customers

Business Partners
                                                                                Combined
Solutions                                                                    elements create
                                                                             economic impact
Competitors                                                                     and value
Knowledge

Reputation

11   © Copyright 2011 Hewlett-Packard Development Company, L.P.
     The information contained herein is subject to change without notice.
Thank you



© Copyright 2011 Hewlett-Packard Development Company, L.P.
The information contained herein is subject to change without notice.

Charlas N: Experiencias de ciudades en transformación - HP in Colombia - Brian Humphries

  • 1.
    HP in Colombia BrianHumphries Growth Markets Organization October 2011 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
  • 2.
    HP overview Industry’s broadest, most diversified FY10 REVENUE FY10 REVENUE portfolio BY SEGMENT BY REGION Imaging & Services EMEA Printing Group 27% 42% 20% Enterprise Storage and Servers Personal 14% APJ Systems Group HP Software Americas 20% 32% 38% HPFS & Other 3% 4% 2 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
  • 3.
    HP overview #1 or #2 in all core markets Market leadership across consumer, SMB and enterprise Winning portfolio Unique IP for hybrid cloud and connected world Innovation & Investments in research and development technology and new acquisitions Global brand & reach Expanding coverage in 170 countries Scale/supply chain Best-in-class cost structure Financial strength Balance sheet and recurring profits People 300,000+ talented people 3 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
  • 4.
    The emerging marketsopportunity Contributing 40% of HP’s Total Addressable Market growth HP TAM (2010) Share of HP TAM growth 100% = 1.2 T 2010-2013 (forecast) 10% Emerging Markets Emerging CAGR Markets HP in FY10 19% 40 % ($0.23T) (~$75B) • Emerging Markets represented 21% of HP’s total revenues but 40% of HP’s revenue growth • HP revenues in Emerging Markets grew Developed Developed Markets ~3x Developed Markets Markets 81% (~$0.99T) 60% (~$110 4% B) CAGR 4 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
  • 5.
    Growth Markets Organization(GMO) HP has established the Growth Markets Organization to facilitate growth in emerging markets 5 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
  • 6.
    Growth Markets Organization(GMO) Leadership enablement Commercial enablement Talent development; Graduate Hiring Multi-year business planning Talent rotation Large deal sales support Population pyramid management Solution & portfolio development 20% (2x market) growth from FY12-15 Requisition process simplification Optimized functional support Total rewards for emerging markets New entity openings and expansions Small country operational model Coordination of efforts Process enablement Infrastructure enablement
  • 7.
    Global Location Strategy(GLS) HP hired 50,000 new employees in 2010, of which 7,000 were placed in GMO countries Global Talent Cost Structure Talent availability Labor costs Education levels Facility costs Universities Incentives value Operations and Risk Business Opportunity Political environment Economic strength / IT market Labor relations Partnerships with public Stability and security sector Customer demand
  • 8.
    The road toMedellin HP’s location investment decision in Medellin was based on a precise selection process that creates new economic value both for HP and Medellin Country • 3rd largest economy in Latin America (~USD $285 Billion in 2010) Growth • Favorable economic climate; GDP growing ~4.5% over next 5 years Potential • Large IT Market of ~$4.5B growing at ~9% annually • Market leader in printing, personal computers and IT services HP Market businesses Position • Broadest portfolio among competitors • Strong partner ecosystem across alliances, channels & distributors Fit With • Sizable country operations currently; poised for growth GMO • Key market in Latin America Strategy • Strong country leadership and talent base 8 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
  • 9.
    Early value andbenefits HP’s partnership with Medellin and Colombia FOR EMPLOYEES FOR THE COMMUNITY Medellin IT reputation boosted by HP Continuous education and development presence Opportunity for significant job creation World-class working environment University programs and graduate placement Exposure to high-end technology Investment initiatives to support regional and national economic development Competitive compensation and benefits Local engagement to benefit Medellin package community 9 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
  • 10.
    What’s possible Building fromHP’s Costa Rica experience 2008-2011 Maturation • HP total capital investment 2004-2007 through August 2011 is $91 Growth million USD • HP starts R&D 2003 operations in 2009 • HP employment has injected Startup • Voted ‘Services over $150 million USD into • HP starts BPO Exporter of the operations in 2004 the local economy since Year’ in 2010 • Holds first HP Job • HP Shared Fair in 2005 • Grows to 7,000 2005 Delivery Services employees by July started in Costa • Grows to 5,500 2011 • HP has created considerable Rica with 123 employees by Oct employees 2007 additional employment in the broader IT ecosystem and support services 10 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
  • 11.
    HP and Medellin– Partnering for the Future Customers Business Partners Combined Solutions elements create economic impact Competitors and value Knowledge Reputation 11 © Copyright 2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
  • 12.
    Thank you © Copyright2011 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.