The reduction in force may be an attempt to align supply with demand. "HP is like a number of other tier-one providers that are realigning their service offerings to be more 'cloud'-like, and is challenged with reconciling the balance between technology and people," says Pinto.

HP is working with McKinsey & Company on its restructuring plan. "[McKinsey] has likely found that that the enterprise services organization is not in line with their expectations from a cost/profitability standpoint and is suggesting necessary changes," says Brian Robinson, research director for business and IT services strategies at outsourcing advisory firm HfS Research. . But rationalizing its outsourcing business the way it has with its printer and PC division is a mistake, says Pace Harmon's Rutchik: "Applying the same philosophy to services will hurt HP in the long term as it is the area with the greatest opportunity for margin-to-margin expansion."

IBM has undergone rounds of layoffs in its global services unit in recent years, according to its employee watchdog groups. Although Big Blue is tight-lipped about its staffing strategy, most industry watchers see the company increasing its hiring offshore. And IBM has made its case as strategic business partner clear to CIOs. Accenture, which also positions itself as strategist-provider, may have undertaken similar steps, though its public relations group keeps a tight lid on layoff talk. Turnover in the CEO role may have delayed HP's examination into what the industry refers to as "rightsizing" their services staff at a time when, observers point out, most outsourcers are now growing.