HP expansion offers new-job hope

Hewlett-Packard hopes to create dozens of hi-tech jobs during the next 18 months after announcing yesterday a "significant" expansion of its Christchurch business software facility.

Alex Bouma, Christchurch location manager for HP, said the number of new jobs depended on the company winning new contracts. A media tour of the company's new facility in Addington showed about 40 computer engineers at work, with desks for about 30 more already in place.

"We are geared up for the first stage of expansion," Bouma said. The company occupies about one-third of a refurbished warehouse and could expand in stages to occupy the whole building, he said.

"Hundreds of new roles could be created," in the years ahead, Bouma said.

HP has operated in Christchurch for 24 years, most recently as a Centre of Excellence under the authority of HP New Zealand. The new entity, called a Global Applications Services Centre, will be operated by HP's global business.

It will specialise in public sector and telecommunications software for clients in New Zealand, Australia and the Asia Pacific, under a strategy HP calls "near shore". This means it will generally service clients in the same region, but can undertake work from anywhere in the world.

"Australia and New Zealand will be key," Bouma said.

Christchurch was selected for the expansion because labour and other costs were cheaper in the southern city compared with Wellington and Auckland. Christchurch is "not low cost" but offers lower costs, he said. There's a "useful arbitrage" between Christchurch, Wellington and Auckland at the moment, he said.

Basing the facility in New Zealand reduced risks for clients because language and time zones were similar, and vetting requirements, especially for government work, were well established.

HP has about 320,000 employees worldwide and is ranked ninth on the Fortune 500 scale of the largest American companies.

"I love HP," said Christchurch Mayor Bob Parker, who unveiled a plaque in the new facility.

Hi-tech was an important sector for the future of the city, he said. "This is one of the great moments for this city this year."

- © Fairfax NZ News