Pegasus Solutions – “Follow the money”

Pros

Pegasus Solutions has some creative people and good talent. The Scottsdale location is good, albeit over kill. The operations staff (non management) *was* dedicated, and they used to support each other.

Cons

Pegasus Solutions just did a crazy thing and outsourced their *entire* Operations staff. All of their DBAs, Unix and Windows System Administrators to HP. This in itself isn't a bad thing, but they underestimated the staff's ability to find work. They did not offer any incentive to help transition to HP support ... AT ALL! Therefore, they will be lucky to have 10% of their experienced staff to do 24 hour support during the Christmas and New Year season. This should give a big leg up to competitors. Pegasus operated on an Operations shoestring, anyhow. Watching a company shooting itself in the foot is not fun.

Advice to Senior Management

Well, I'm not sure you can do anything at this point. Get the HP staff on-site and offer some key people some very large retention bonuses; you may get one or two to bite. Also, look at who on your staff recommended this (transferring support without a plan), and see if you can find who is working with the competition. Anybody is replaceable; even an entire Operations department if at least some planning is done.