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Article

Title: 'NOW, WE'RE RESPECTABLE'

Author: Gibson, Stan Article Type: Company
Source: eWeek, v23 n4 p16(3) Publication Date: Jan 23, 2006
  ISSN: 1530-6283
  Illustrations: Charts, Photographs
URL of Publication: http://www.eweek.com

Electronic Data Systems (EDS) Corporation is in the middle of a turnaround, which is not expected to be completed until the outsourcing and systems integration firm returns to the status it had when Ross Perot was in charge. This means simplifying EDS offerings to meet the needs of customers. Michael Jordan, chief executive officer of EDS, wants to restore the firm to a leadership position and move it away from its problems concerning bank debt, doubts about its financial viability, and disgruntled customers. Jordan's work is showing results, and the company signed $5.3 billion in contracts in the third quarter of 2005. This represents an increase of 83 percent over the previous year. EDS is winning its bids by taking a disciplined approach that stays within the company's expertise in vertical industries and that uses the products of a group of technology partners known as the Agility Alliance. EDS is implementing established technologies, and most of the vendors in the alliance have the same kind of intense rivalry with IBM, their strongest competitor, as EDS does. Industry observers note that EDS still has a way to go in making effective utilization of offshore resources. Unless the firm gains higher savings from sending work to low-cost destination, it will not be able to offer aggressive pricing while maintaining its margins. EDS believes its partnership alliance will continue and bring considerable benefits in the future.

Special Features: Charts, Photographs

Companies:
EDS

Products:
Systems Integrators

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