Deutsche Post, owner of DHL, has decided not to proceed with a multibillion-dollar outsourcing deal after the cost savings it expected could not be achieved, according to Information Week.

The decision was reached after a six-month review found that the "benefits, particularly in the early years, do not outweigh the risks", according to an internal memo obtained by the publication.

The arrangements for the collapsed deal were for HP to hire 2,500 Deutsche Post employees, including those working for DHL. It also included taking over various ITO and managed service functions in Scottsdale, Ariz.; Prague, the Czech Republic; Malaysia; and other regions.