HP Wins $175 Million Deal From Rockwell Collins As Outsourcing Business Picks UpHP Wins $175 Million Deal From Rockwell Collins As Outsourcing Business Picks Up

Hewlett Packard said Wednesday that it won a $175 million contract to provide technology services to aviation manufacturing giant Rockwell Collins -- the latest indication that HP's once stagnant outsourcing business is slowly gaining steam.

Under the seven-year infrastructure management deal, HP will provide a range of tech services to Rockwell Collins, including help desk and desk side support, and server management at 60 locations around the world. The agreement "will allow Rockwell Collins to focus its e-business on core services," said John-Paul Besong, a senior VP at Rockwell Collins, in a statement.

HP's revenues in 2005 from technology services increased just 1%, to $15.6 billion, as the company faced increased competition from low cost service providers based in India and domestic stalwarts IBM and EDS. However, of late it's enjoying some modest growth in outsourcing -- posting a compound quarterly growth rate of 4.7% in managed services revenues over the past four quarters.

The company also has enjoyed some big contract wins during that period, securing a $500 million deal from DirecTV and a $1.2 billion deal from Canadian financial services conglomerate CIBC. HP also recently won a seven year contract of undisclosed value to provide tech services to PepsiCo.