Benzinga  Sep 12  Comment 
Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date. What Happened On this day 50 years ago, Electronic Data Systems went public. Where The Market Was The Dow Jones Industrial Average closed...
NPR  Jul 8  Comment 
In 2012, Medicare was rocked by allegations that hospitals were systematically overcharging the program by miscoding electronic medical records. A study released Wednesday took another look.
Forbes  Jan 31  Comment 
I was delighted that when Search Engine Journal identified the 25 greatest Super Bowl commercials of all time this week that on the list, among the beer, snack, and soda ads, were two technology ads. The top one on the list, of course, was...
New York Times  Jan 16  Comment 
Hewlett-Packard has received a number of inquiries from would-be buyers for its Autonomy and Electronic Data Systems units in recent weeks, though the technology company isn't interested in selling at the moment, a person briefed on the matter...
New York Times  Nov 20  Comment 
The announcement that Hewlett-Packard will take a $8.8 billion charge comes just one quarter after it took a large write-down in relation to Electronic Data Systems, which itself follows a string of deal-making missteps by the company.
BusinessWeek  Dec 21  Comment 
U.S. regulators want to know if Hewlett-Packard's former CEO leaked information to a contractor about HP's planned Electronic Data Systems acquisition, say persons familiar with the matter
Reuters  Nov 6  Comment 
A former Hewlett-Packard Co contractor once claimed Mark Hurd divulged details about HP's plans to acquire Electronic Data Systems Corp before the deal was announced in...  Jun 7  Comment 
The sum is a final settlement over 'woeful' contract with the HP subsidiary Electronic Data Systems BSkyB will be paid a total of £318m as part of the final settlement of a long-running legal case against the Hewlett Packard subsidiary...  May 27  Comment 
Blockbuster spikes as it throws its support around the newest candidate for director.  May 27  Comment 
BusinessWeek  Mar 5  Comment 
Hewlett-Packard Co. revised its first-quarter results, cutting profit by 3 cents a share, after a lawsuit against its Electronic Data Systems unit increased legal costs.


Electronic Data Systems Corporation (EDS) is a global technological services company that was acquired by Hewlett-Packard (HPQ). Forty years ago, Ross Perot founded EDS and, in doing so, created the information technology outsourcing industry. Today, EDS offers a range of IT and business process outsourcing services to clients in fields as diverse as Healthcare , financial services, manufacturing, and government. For example, EDS helps businesses process credit card transactions, manages 65,000 servers around the world, and provides technical support for 3 million desktop computers. EDS also runs both the technology and staffing for Human Resources departments for 400 organizations in the western hemisphere, including payroll services and employee relations. Headquartered in Plano, TX, the company has approximately 131,000 employees located in the U.S. and around the world.

Business Overview

Electronic Data Systems is in the process of developing and improving a new technology platform called the EDS Agile Enterprise platform. This network-based platform is intended to increase EDS' flexibility and reduce costs by providing a new way for clients to structure their IT systems. The key feature of this platform is its adaptability to the changing technological environment: while it does not create any new services on its own, the Agile Enterprise platform is designed to accept and integrate additions and new services with the existing services, instead of merely mashing old and new together as many other infrastructures do. A related initiative is the formation of the EDS Agility Alliance, a cooperative group of technology companies including EDS, Cisco Systems, Dell, and Microsoft. The companies in the Agility Alliance have teamed together to promote the Agile Enterprise platform, and the platform supports the services of all Alliance companies, in order for them to best tailor their offerings to client needs.

Trends and Forces

Increasing Outsourcing of Technology Jobs

The net outflow of information technology jobs from the United States and into areas with developing economies has been occurring for several years. Firms are outsourcing more and more of their technology-related needs to offshore offices, many of which are owned and operated by third party firms such as EDS. Electronic Data Systems is taking advantage of this trend by opening many of its new offices in offshore locations, which allows EDS to enjoy the benefits of lower labor costs. EDS has been expanding most rapidly in India, but has also opened branches in China, Latin America, Hungary, and Poland.

Rapid Growth of Technology

The extreme speed at which technological advances are made has serious repercussions for Electronic Data Systems. The infrastructure business, currently the largest division of EDS, faces sizeable depreciation charges every year, as the existing technology becomes outdated and slower, less efficient, or less accurate than newer technology. EDS constantly spends large amounts of capital on research and development of new technologies, and on implementing the new networks and service platforms that are developed.

EDS is somewhat cushioned, however, from the rapid pace of technological development by its business process outsourcing (BPO) services. BPO is much less dependent on technology than the infrastructure division, and requires less capital investment to maintain competitiveness. As EDS continues to expand its BPO division, the firm will become less depending on the capital-intensive IT division and can realize higher margins and greater market stability.

The speed of technology turnover is overall good for EDS, as it creates barriers to entry for potential competitors. EDS has the experience and existing research procedures to keep on top of new developments that newer companies may lack. Furthermore, the growing uses of technology, by both consumers and businesses, contributes to continued demand for EDS's services.

Economies of Scale Help Cut Costs and Improve Service

EDS has been active in soliciting other technology companies to cooperate as part of the EDS Agility Alliance. The Alliance was active in jointly developing EDS's Agile Enterprise Platform, which will be integrated with the Alliance members' products and services as well as EDS's own. This allows all the Alliance members to split research and implementation costs, as well as offer a larger number of clients a wider range of functionality on the same service platform than any one firm could do alone.


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