Improve Performance -Update query with OR in WHERE How do we improve this Update query Performance as currently it is taking 1 Minute to update 17643 Rows.

Query -> 

  Declare @date datetime = '09-Dec-2013' 
    update  #tmp_sp_abc  
    set     test = rtrim(xyz_test)  
    from    #tmp_sp_abc t1,  
            t_h_bg_pc_it t2  
    where   (t2.id_i = t1.i or t2.id_s1 = t1.s)  
    and     t1.r_type = 1  
    and     t2.[date] = @date  


Tables Row Count: - 
    #tmp_sp_abc -> 125352
        t_h_bg_pc_it -> 14798 Rows 

t_h_bg_pc_it table has 300 columns with primary key on id_i column
and #tmp_sp_abc has 11 columns with no primary key and no indexes.

found that "OR" condition is the root cause of this much time consumption but, can't change it.

tried to add indexes on: - 

Table: - t_h_bg_pc_it 
Columns: - [xyz_test], [id_i], [id_s1], [date]

Table: - #tmp_sp_abc 
Columns: - [i], [s], [r_type] include [test]


but, by doing this saved only 5 seconds.

Attaching the Execution Plan Snaps (Without above indexes and with indexes).



Please advice.
The best option if you really want to squeeze out the most is to parallelise the query.

Instead of a single UPDATE, run multiple copies. Each of them operate on a subset of the data in the temporary table. Keep adding more copies and more subsets until you run out of cores of CPU (whatever happens first).

If you don't have the ability to parallelise. Run two UPDATES, one that works on the first part of the OR, another on the second. If possible, add indexes on t_h_bg_pc_it to support both queries. Like this:

Declare @date datetime = '09-Dec-2013' 
update  #tmp_sp_abc  
set     test = rtrim(xyz_test)  
from    #tmp_sp_abc t1
join    t_h_bg_pc_it t2 
  on    t2.id_i = t1.i
where   t1.r_type = 1  
and     t2.[date] = @date

update  #tmp_sp_abc  
set     test = rtrim(xyz_test)  
from    #tmp_sp_abc t1
join    t_h_bg_pc_it t2 
  on    tt2.id_s1 = t1.s
where   t1.r_type = 1  
and     t2.[date] = @date


You can now index t_h_bg_pc_it on both s, date, xyz_test and id_id, date, xyz_test (two indexes). This should speed things up. It may also be useful to index #tmp_sp_abc on r_type. If possible, do both the parallelism and the indexing/rewrite.

Finally: Fire whoever it is that comes up with naming conventions for your tables. Life is too short for this type of cryptic naming, SQL Server does auto-completion.