HP Wins Government Contract - Analyst Blog

After rolling out encouraging second quarter numbers, Hewlett-Packard (HPQ) recently won a $41.6 million contract from the U.S. Department of Homeland Security Immigration and Customs Enforcement’s (ICE) Law Enforcement Support Center (LESC).
 
As per the terms of the agreement, HP will provide application services to these U.S. Government agencies, which is expected to speed up the process of completing an immigration application. To facilitate the whole process, HP will automate the process of manual status determination, develop warrants and put in place an automatic criminal tracking technology.
 
This is one of the major wins by HP in recent times, which adds to the computing major’s ever increasing Government customer base.
 
Apart from strengthening its government services vertical, HP is also making all possible efforts to broaden its geographic presence, especially in developing economies.
 
The company is well-positioned to benefit from the growing small and medium business (SMB) segment. This sentence is hanging here. Needs to be supported with additional info or deleted.
 
It is also rationalizing its core portfolio by strengthening core businesses and relocating operations to low-cost regions to reduce costs (such as sending its mono-laser business to Shanghai). HP also announced plans for an advanced manufacturing facility in Chongqing to strengthen its ability to serve the fast-growing Chinese market and reduce the cost structure.
 
This apart, as per the figures published by IDC, HP still rules the computing world, with the largest market share of 19.7% and registering a unit shipment growth of 19.9%. The next three positions were filled by Acer, Dell (DELL) and Lenovo. The technology research firm also projected the fiscal year 2010 PC shipment to grow by more than 15%. We believe that being the largest market share holder in the PC segment, HP will derive maximum benefit from it.
 
Taking into account, the benefit that it will derive from the increase in IT spending, HP has projected an encouraging guidance for the fiscal year 2010. We completely believe in the growth story of the company, but would like to witness a better performance from its printing unit in the upcoming quarter.
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