HP India to Review the New PFR Policy

HP India has said that it is reviewing the recent changes in its flagship annual incentive program, Pay For Result (PFR).

At the beginning of November, which is the start of HP's financial year, the company announced that all special price clearance (SPC) deals will not be eligible for incentives under PFR. Many HP partners had raised concerns about the new rule suggesting it would significantly hurt their business profitability, as SPC deals including rate contracts, contribute a large chunk to their overall HP business. 

However in an exclusive interview with CRN, Sunil Dutt, Vice President, Personal Systems Group, HP India said, "Many partners have raised their concerns with us about PFR, and based on this we have gone to APJ (Asia Pacific & Japan) team and asked them to review the new policy. We have presented the argument that executing business in a market as vast as India has different cost structures compared to doing the same kind of business in other emerging countries. I firmly believe that there needs to be certain incentives for partners for any type of activity involved with fulfilling HP’s business, and we have built a strong case with the APJ team. " 

While Dutt said that it may be difficult to make any changes to PFR as it is a global program, he assured, "My sense is that the PFR program will not change as it’s a global program, but we have the option to introduce some form of partner incentive for SPC business, maybe outside the PFR umbrella. I am hopeful that we will address this issue soon."