Hewlett-Packard to create 200 jobs

Hewlett-Packard is to create 200 jobs over the next three years at its Leixlip facility.

The plan was announced yesterday by the Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney, and is significant because it marks a new departure for Hewlett-Packard Ireland into electronics and software development.

The company recently reversed plans to create a further 1,500 jobs at the Leixlip inkjet manufacturing operation over the next two years.

Employees taken on in the new recruitment drive will join the company's newly integrated "Technology Campus", instead of working solely to support the manufacturing operation where 1,350 people work.

All the new jobs will go to software and computer science graduates with industry experience. Until now employees at Hewlett-Packard's Leixlip facility have been primarily engaged in manufacturing activities.

The Irish operation recently extended to provide human resources, finance and information technology services supporting the manufacturing operation. Now it is following the industry trend to provide IT services for third party clients who wish to outsource these activities.

The move follows the establishment of similar Outsourcing Services Divisions (OSDs) in Italy, Germany and France. Under the arrangement the OSD will remotely support the networking and computer applications requirements of third parties by linking their servers to those of their clients.

Hewlett-Packard already conducts a number of services of this nature for banks throughout Europe. It is its fastest growing business segment. Activities are software focused, and include network management and customer interaction.

The IDA is particularly pleased with the announcement because it is the type of model the Government has been encouraging inward investors to adopt. It believes value can be added to many of the multinational manufacturing operations already in existence here by focusing more on intelligence-based skills.

Speaking at the announcement, the Tanaiste said: "This new development at Hewlett-Packard will be a valuable reference for IDA Ireland in attracting further services projects to Ireland, and in encouraging other major international companies with solely manufacturing operations here to add on service activities. It helps to ensure the Irish facility's long term success, deepen its roots here and further integrate it in the parent company's global operations."

Hewlett-Packard's Technology Campus site has capacity to take on several thousand additional staff, and is one of the key reasons it was chosen as an outsourcing services division.

According to Mr David Young, managing director of Hewlett-Packard Ireland: "We have the infrastructure, available talent and government support to take this on. There are currently no growth projections for the inkjet business, and because this is the newest facility, any global slowdown tends to be implemented here immediately."

Mr Young believes the latest development will have a positive impact for everyone on the site. "It offers diversity, new career paths, and greater closeness to customers. It will keep people on their toes, sharpening their skills all the time."

The Technology Campus is the outcome of an initial approach made by the IDA to senior Hewlett Packard management in the US last year. According to Mr Young it identified the opportunity for the Irish operation to diversify before Hewlett-Packard had spotted it.