HP Russian sales grow 24 percent in 2006

12.12.2006
Vice-president of Hewlett-Packard Co. and managing director of HP Russia Owen Kemp has announced the company's 2006 fiscal year results for the country.

Sales HP made in Russia have grown by 24 percent to the previous year, leapfrogging HP worldwide growth rate of 6 percent and surpassing the overall Russian IT market growth, which IDC estimated at 18 percent.

Kemp described the Russian IT market as 'still fragmented' waiting for mergers and acquisitions. Yet, the market becomes more mature, which has resulted in increased profits of the HP's consulting and systems integration division. Its turnover has almost doubled to the previous year. HP is going to keep composing its service portfolio together with over 2,000 local partners.

The only thing that disappointed the head of the Russian rep office was the performance of the outsourcing division he had been very hopeful about. All other divisions showed 'remarkable' growth, he said. For instance, sales of printing devices jumped nearly 1.5 times, some 1.8 million HP printers were sold in Russia last year.

Offshore programming managed by Justine Lifflander is thriving. HP opened this division two years ago to service a large Russian telecom company. It has already attained CMMI Level 3 and its turnover has increased 100 percent compared to the last year. Russian customers generate only 21 percent of its sales. The rest is exported. 60 engineers develop software and provide accompanying services. If necessary, HP hires contractor developers for custom projects.

HP's senior executives said, the title of the largest computer company helps a lot to meet staffing challenges. The company is actively recruiting both in Moscow and Saint Petersburg. There are around 80 vacant positions in the company now. HP invested US$2 million in staff training last year.