Electronic Data Systems
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| Electronic Data Systems Corp | |
|---|---|
| Type | Public |
| Founded | incorporated June 27, 1962 |
| Headquarters | Plano, Texas, USA |
| Key people | Ronald A. Rittenmeyer, Chairman, President & CEO |
| Industry | Information technology services |
| Products | Computer Services |
| Revenue | $21.3 billion USD (2006) |
| Employees | 136,000 (50,000 onshore, 86,000 offshore) |
| Website | www.eds.com |
Electronic Data Systems (EDS) (NYSE: EDS, LSE: EDC) is a global business and technology services company headquartered in Plano, Texas that defined the outsourcing business when it was established in 1962 by Ross Perot. General Motors acquired the company in 1984, spun it off again as an independent company in 1996, and became an EDS client. In 2006, EDS employed 117,000 people located in 58 countries and reported revenues of US$19.8 billion. It is ranked as one of the largest service companies on the Fortune 500 list.
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[edit] Company structure
In 2006 EDS sold their management consulting subsidiary company, A.T. Kearney, in a management buyout and retained interests in 4[citation needed] related companies:
- ExcellerateHRO, which offers human resources outsourcing services jointly owned by Towers Perrin.
- Injazat Data Systems, which is a joint venture between EDS and Mubadala Development Company of Abu Dhabi. Its purpose is to provide IT and business process outsourcing (BPO) services in the United Arab Emirates, Qatar and Oman to the government, oil and gas, utilities, financial services, transportation, telecom and healthcare sectors.
- SOLCORP, which provides software solutions and services for the life insurance and wealth management industries.
- Wendover Financial Services, which supports consumer lending products.
[edit] Recent acquisitions
In November 2007, EDS announced it has agreed to purchase an approximate 93 percent equity interest in Saber Holdings, Inc., a leading provider of software and services to U.S. state governments, from various sellers, including majority shareholder Accel-KKR, for approximately $420 million in cash.
In March 2007 EDS acquired RelQ ltd, a premier testing company based in Bangalore, India.
In June 2006 EDS acquired a majority holding in MphasiS, a leading applications and business process outsourcing (BPO) services company based in Chennai, India.
iNautix operates out of two facilities in Chennai, 118,000 sq.ft. at TIDEL Park and 68,000 sq.ft. at Ascendas.
[edit] Revenue sources
For 2006, $9.6 billion of revenue came from the Americas (Canada, Latin America, and the United States); $6.4 billion from Europe, Middle East, and Africa; $1.5 billion from Asia-Pacific;[citation needed] Services' revenue was: Infrastructure $12 billion, Applications Software $5.9 billion, Business Process Outsourcing $3 billion and all other $421 million.
EDS recently announced the expansion of its SAP consulting practice. "By collaborating with SAP on client engagement training and techniques that will drive the long-term growth of its consulting practice, EDS will further enhance its existing SAP capabilities and bring end-to-end SAP consulting and systems integration to the market by early 2008. Additionally, EDS will work closely with SAP's Global Partner and Ecosystem Group for market penetration and value-added customer offerings."
[edit] Locations
EDS operates in 65 countries[1], centered in the metropolitan areas of Dallas-Ft. Worth, Texas, Detroit, Michigan, Des Moines, Iowa, Clarion, Iowa, Salt Lake City, Kentucky, Tulsa, Oklahoma, Boise, ID and Northern Virginia in the United States. Other major facilities are in Argentina, India, Brazil, Mexico, Canada, Germany, the United Kingdom, Australia, New Zealand, Hungary and Spain.
EDS's Plano, Texas campus is located about 20 miles (30 km) north of downtown Dallas. The campus consists of 3,521,000 square feet (327,000 m²) of office and data center space on 270 acres (1.1 km²) of land. It is the center of the 2,665 acre (11 km²) Legacy in Plano[2] real estate development, which EDS built.
[edit] Company sponsorship
EDS is the title sponsor of the PGA Tour's EDS Byron Nelson Championship, played in nearby Irving, Texas. The tournament raises more than $6 million dollars each year for youth and family service centers in Dallas. From 1998 to 2001 EDS sponsored Derby County F.C., who during this time were members of the English Premier League.
EDS signed a sponsorship agreement in [2007]with Nobel Media to become a Global Sponsor of the Nobel Prize Series, and with Nobel Web to become its Global Technology Services Partner. The three-year agreement enables EDS to apply its technology expertise for the benefit of the Nobel Prize Series and the organization's Web technologies, including supporting the development of content on nobelprize.org, Nobel's award-winning website.
[edit] Services
EDS catalogs its services into three service portfolios which are Infrastructure, Applications and Business Process Outsourcing.[3] Infrastructure services includes maintaining the operation of part or all of a client's computer and communications infrastructure, such as networks, mainframes, "midrange" and Web servers, desktops and laptops, and printers. Applications services involves the developing, integrating, and/or maintaining of applications software for clients. Business process outsourcing includes performing a business function for a client, like payroll, call centers, insurance claims processing, and so forth.
[edit] Partners
EDS establishes a number of business alliances[4] with other companies in the EDS Global Alliance program. The alliances are grouped into three groups, Agility Alliances, Solution Alliances and Technology Alliances.
The EDS Agility Alliance has worked on a range of projects, notably its Agile Enterprise[5] architecture, EDS' next-generation global delivery system which EDS claims[citation needed] will be both cheaper to operate and more adaptable to business change. Members of the EDS Agility Alliance include Cisco Systems, EMC Corporation, Microsoft, Oracle, SAP, Sun Microsystems, and Xerox.
[edit] Major clients
Most of EDS's clients are very large companies and governments that need services from a company of EDS's scale. EDS's largest clients include General Motors, KarstadtQuelle, Kraft and the UK Ministry of Defence.
EDS formed the National Heritage Insurance Company in 1996. The creation of this subsidiary is to manage Medicare Part B services on behalf of the Centers for Medicare and Medicaid Services (CMS), formerly the Health Care Financing Administration (HCFA). NHIC handles call center, claims processing and payment, fraud investigations, physician enrollment etc. in many states of the US.
Another large EDS client is the United States Navy. In 2000 , they won a contract for the creation of a US$9 billion intranet linking the Navy and the Marine Corps, which was set to late 2006, but on March 24, 2006 was extended to 2010, adding $3 billion to the accumulated contract worth. This initiative is known as the Navy Marine Corps Intranet, or simply NMCI. In 2004, NMCI accounted for about 4% of EDS's revenue. NMCI has been called the largest private network in the world, with approximately 400,000 "seats". EDS is providing the network, desktops, laptops, servers, telephones, video-conferencing, satellite transceivers, and overall management of the intranet.[6]
Following on to the NMCI type of services, EDS in March 2005 won a US$4 billion contract with the UK Ministry of Defence[7] to "consolidate numerous existing information networks into a single next-generation infrastructure.... The network will provide seamless interaction between headquarters, battlefield support and the front line, linking about 150,000 desktop terminals and 340,000 users in approximately 2,000 locations...."
Of historical significance, just prior to the overthrow of the Shah of Iran, EDS was the IT company that developed the Iranian social security information system. During the 1979 overthrow, several EDS employees were detained by the transitioning government of Iran, causing H. Ross Perot to undertake extraordinary clandestine measures to get these employees out of Iran.[8] These events were recounted in Ken Follett's book On Wings of Eagles.
[edit] Controversy
EDS drew criticism from the UK National Audit Office for their work on controversial IT systems for the Child Support Agency.[9] The implementation of a cross-service payroll system for the UK MoD has been problematic.[10]
The performance of the system to administer Tax Credits for the UK Inland Revenue (now HM Revenue & Customs) was far lower than expected, resulting in payments failing to arrive for the thousands of low-paid workers and their families who needed these benefits.[11] This failure ultimately resulted in EDS being dropped by HM Revenue and Customs in favour of CapGemini and EDS settling with HM Revenue and Customs for £71 million. EDS argued that they should have been given much more time to test the new system. [12]
[edit] Leadership change
EDS announced on 19 July 2007 that its board of directors has unanimously elected Ronald A. Rittenmeyer, currently president and chief operating officer, as president and chief executive officer, effective September 1, 2007. Rittenmeyer was also elected to the company’s board of directors, effective immediately.
On December 4, 2007, Rittenmeyer[3] was elected EDS Chairman of the Board. Michael H. Jordan, who has served as EDS’ chairman and chief executive officer since March 2003, will become chairman emeritus and will step down from the board of directors. Both appointments are effective December 31, 2007. Jordan, who joined EDS in March 2003, will remain with EDS and serve as a strategic adviser to the company’s senior leadership team.
[edit] References
- ^ Locations, EDS Website
- ^ Legacy in Plano
- ^ Services, EDS Website
- ^ Alliances, EDS Website
- ^ Agile Enterprise, EDS Website
- ^ NMCI Overview, EDS Website
- ^ EDS-Led Consortium Signs Contract With U.K. Ministry Of Defence For Defence Information Infrastructure Project, EDS Website
- ^ Operation HOTFOOT, medicaid.state.ar.us
- ^ Private Eye 17 November 2007
- ^ EDS's RAF pay system struggles to take off, The Register
- ^ [1], The Register
- ^ [2], BBC News
[edit] External links
- Electronic Data Systems (official website)
es:Electronic Data Systems fr:Electronic Data Systems id:Electronic Data Systems it:Electronic Data Systems no:Electronic Data Systems pt:EDS ro:EDS zh:EDS
Categories: Companies listed on the New York Stock Exchange | Companies listed on the London Stock Exchange | All articles with unsourced statements | Articles with unsourced statements since June 2007 | Articles with unsourced statements since February 2007 | Companies established in 1962 | Plano, Texas | Business services companies of the United States | Computer companies of the United States | Companies based in Plano, Texas | Internet companies of the United States | Information technology consulting firms | Multinational companies | Open Travel Alliance
