Hewlett Packard (HP) has landed up with a seven year extension of outsourcing contract of around $500 million with DirecTV. The relationship between DirecTV and HP is more than a decade old and HP would continue to provide technological support for introducing new services, billing services and acquiring customers.
DirecTV would be able to pocket around $100 million in savings or in other words a reduction of twenty percent in cost. The contract has been priced on preset per subscriber fee which would help HP in managing capacity in a better manner as the client base of Direc TV grows and eliminates the need for future price talks.
