Compaq merges services

Compaq's South Pacific operation has consolidated its professional services and customer services business units under one umbrella.

The consolidation process, part of the company's emphasis on services and dubbed Compaq Global Services (CGS), started three weeks ago and will undergo a two-stage process. A single management team for the unit will be formed within the next three to four weeks, with Andrew Richardson appointed as director of the newly formed CGS South Pacific. He said that most if not all, the management positions will be filled internally.

The second stage of consolidation will involve aligning the organisation under a new structure, which Richardson said will be a full integration process rather than just "sticky taping" the two businesses together. Part of the consolidation includes redistributing the business into three practice areas - integration, managed services and customer services.

While Richardson would not confirm what areas are likely to be made obsolete in the changeover, he acknowledged some small parts of the business might not continue. He also noted that because there is a focus on growth within the organisation, there would be few, if any, job cuts.

Compaq's move towards beefing up its services offerings started around 18 months ago, but was highlighted earlier this year by an internal memo from CEO Michael Capellas to the company's 68,000 staff worldwide, outlining a consolidation of the company's three existing services businesses.

At the time, Compaq was unwilling to comment on how operations would be affected locally. However, Richardson said this move is part of the global Compaq strategy. The only difference locally will be that Compaq Financial Services will remain a separate, but closely aligned, part of CGS.

According to Richardson, the services divisions has been branding itself under the CGS banner internally since the start of last year, but as the business units increasingly began to overlap it started to cause problems for both customers and employees.

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