HP to outsource more in Asia, Europe

Aside from IBM, industry giant HP has also been very agressive in its outsourcing business. Not surprising since IBM and HP are bitter rivals and both claim to be the number one tech company worldwide.

Both IBM and HP have landed multi-million dollar outsourcing deals to handle tasks such as HR and payroll processing.

HP is currently developing a very smart outsourcing strategy. The company recently announced it is looking to shift its call center and software development tasks to at least nine countries in Europe and Asia, including outsourcing leader India.

According to an HP official, this will go on a case by case basis as manufacturing costs and tax benefits vary in different locations.

Although HP is looking to increase the amount of tasks outsourced to India, it is nonetheless looking at other countries as well.

Taken from a business perspective this recent announcement makes sense. By telling the world that it is a keen believer of outsourcing, HP is looking to attract more clients into its outsourcing business. Also, they've smartly hedged their bet, avoiding a single country, like India as their outsourcing destination.

In short, HP is building a diversified portfolio of outsourcing centers. A smart move in a very competitive business.