News release

Compaq Global Services Posts 28% Gain in New Outsourcing Bookings, Surpassing $1 Billion Mark in 2001

Growth Rate Doubles Industry Mark

Compaq Global Services, the $7.8 billion services arm of Compaq Computer Corporation (NYSE: CPQ), posted more than $1 billion in new outsourcing engagements in 2001, growing bookings more than 28 percent year over year, the company announced today.

The company's outsourcing services growth rate was more than twice the total IS outsourcing market's 5 year CAGR of 12 percent—based on a May 2001 IDC report. The unit's long-term 85 percent customer renewal rate, bolstered by the introduction of new service offerings, was instrumental to the explosive growth rate, according to Compaq.

"Customers—expecting more value for their IT dollar—are increasingly relying on Compaq to reduce the risk and complexity of adopting new technologies," said Dr. Judy Fick, vice president, Compaq Global Services. "We enable customers to focus more sharply on their business—taking responsibility not just for IT performance and cost, but collaborating on their strategic alignment of IT assets to business results."

Compaq's outsourcing business focuses on selective outsourcing for IT infrastructure management and end-user support. Through customized or standardized "utility" engagements, Compaq meets stringent demands for IT performance, cost control and service quality, enabling customers to focus on their core business.

Compaq's Computing on Demand initiative—launched in 2001 to simplify IT acquisition, deployment and management—has fueled demand for Compaq's enterprise management capabilities and technology expertise.

Ericsson and GE Aircraft Engines renewed significant outsourcing contracts with Compaq in 2001. American Express, Regus and Blue Cross Blue Shield of Michigan were among businesses that signed new deals.

About Compaq Global Services

Compaq Global Services, the $7.8 billion services arm of Compaq Computer Corp., provides system integration, customer support and outsourcing services to help enterprise clients build, deploy and manage IT environments. With more than 38,000 employees backed by a worldwide network of operations management and customer support centers, Compaq Global Services offers capabilities and expertise to help clients develop effective IT service strategies and ensure uninterrupted business operations.

Company Background

Founded in 1982, Compaq Computer Corporation is a leading global provider of enterprise technology and solutions. Compaq designs, develops, manufactures and markets hardware, software, solutions and services, including industry-leading enterprise storage and computing solutions, fault-tolerant business-critical solutions, communication products, and desktop and portable personal computers that are sold in more than 200 countries. Information on Compaq and its products and services is available at http://www.compaq.com.