See, Maxwell was right. Space contains ether. We just never figured out how to measure it. :)

Reducing costs is part of the story for outsourcing, but it is not always the entire story. It consumes capital and intellectual capital to manage as much as 15% of your business. Maybe the company is better off to invest elsewhere.

Many companies do not manage their own payroll. It is not immediately apparent they do this to reduce costs. However, relieving staff of figuring out how to garnish wages, pay all the separate taxing bodies, .... We might spend too much time on something that is not essential to the business process.

For outsourcing IT, you should look at the application space. If all the services provided are accounting and payroll, then you can run for the door. These things can always be outsourced and costs are the primary factor.

If the applications work really enables the business to serve its customers, then the company may be experiencing many problems with the manner in which development is performed and is throwing in the towel.

Whatever, if you decide to follow HP, you should look at its reputation. Look in Fortune Magazine and look at HP's track record on both its business and its ranking as a place to work. If you would buy HP's stock and you believe it serves its employees well, I would fight for a job at HP. In any case, dust off the CV. The new company is going to interview you regardless.