HP stepping up outsourcing in India, sources say

Having handled a large chunk of its own global accounting functions from a subsidiary in Bangalore for more than three years, Hewlett-Packard Co. (HP) is now offering similar back-office services from India to its customers, sources familiar with the plans said.

“Having gained the confidence that we can do this out of India, we are extending these accounting services to our clients,” said a senior HP official in India, who spoke on condition of anonymity.

To begin with, HP is setting up a back-office accounts processing facility in Bangalore for Procter & Gamble Co. (P&G), according to other HP sources in India. It was unclear how many staff will work at the P&G facility or exactly which accounts functions will be handled. HP has offered some of the staff working in its own accounting operations the opportunity to work at the P&G facility, the sources said.

HP said in March that it had agreed in principle to outsource P&G’s worldwide transactional accounts payable operations to HP Services, although it didn’t say at the time where the work would be done. P&G, based in Cincinnati, is the largest household products company in the world, operating in markets such as food and drink, personal care, laundry and cleaning.

HP has three similar outsourcing deals in the pipeline, the HP sources said.

HP officials in India did not return numerous calls and e-mail messages seeking comment. HP in the U.S. could not immediately comment on the efforts Wednesday.

To be able to process accounts from non-English speaking countries, Palo Alto, California-based HP is creating a team of language experts at its back-office facilities in Bangalore, the HP sources said. The operation already handles some of HP’s accounts in other languages, including Spanish.

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