(EDS) (, ) is a global
Business And Technology Services company that defined the
Outsourcing business when it was established in 1962 by
Ross Perot . Headquartered in
Plano, Texas ,
General Motors acquired the company in 1984, although it became an independent company again in 1996. In 2006, it employed 117,000 people located in 58 countries and reported revenues of US$19.8 billion. EDS is ranked as one of the largest
Services Companies on the
Fortune 500 list.
Of historical significance, just prior to the 's book ''
On Wings Of Eagles ''.
in
Detroit .]]
In 2006 EDS sold their management consulting
Subsidiary Company A.T. Kearney in a management buyout and retained interests in 4 related companies which are:
- 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.
- MphasiS , A global IT and BPO services arm based in India.
In
June 2006 EDS acquired a majority holding in
MphasiS , a leading applications and business process outsourcing (BPO) services company based in Bangalore, India.
In March 2007 EDS acquired RelQ ltd, a premier testing company based in Bangalore, India
For 2004, 56% of revenue came from the Americas (Canada, Latin America, and the United States); 27% from Europe, Middle East, and Africa; 5% from Asia-Pacific; 4% from A. T. Kearney; and 8% from "other", such as currency exchange, asset sales, etc. Services' revenue was: Infrastructure 52%, Applications Software 24%, Business Process Outsourcing 12%, A.T. Kearney (management consulting) 4%, and other 8%.
EDS operates in 60 countries''
Locations '', EDS Website, centered in the metropolitan areas of
Dallas-Ft. Worth, Texas ,
Detroit, Michigan ,
Salt Lake City ,
Kentucky ,
Tulsa, Oklahoma , and
Northern Virginia in the
United States . Other major facilities are in
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 m&
2) of office and data center space on 270 acres (1.1 km&
2) of land. It is the center of the 2,665 acre (11 km&
2)
Legacy In Plano ''
Legacy in Plano '' real estate development, which EDS built.
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.
EDS is also the sponsor of the Nobel Media and Nobel Web – organizations associated with the world’s highest recognition, the Nobel Prize. EDS will work with these Nobel organizations on technology solutions and education programs to raise awareness of the various Nobel Prize categories.
EDS catalogs its services into three service portfolios which are Infrastructure, Applications and
Business Process Outsourcing .''
Services '', EDS Website 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.
EDS establishes a number of . 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 it's Agile Enterprise''
Agile Enterprise '', EDS Website architecture, which EDS claims 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 Corporation ,
SAP AG ,
Sun Microsystems ,
Towers Perrin and
Xerox .
Most of EDS's clients are very large companies and governments that need services from a company of EDS's scale. EDS's largest client is General Motors, which accounts for nearly 20% of EDS's revenue. GM has plants in 32 countries, and EDS is one of a few IT services companies that can handle that kind of a client. EDS is attempting to cut GM IT costs by off-shoring some work to cheaper labor markets such as
India ,
China ,
New Zealand ,
Egypt ,
Brazil , and
Argentina .
EDS formed the National Heritage Insurance Company in 1997. The creation of this subsidiary is to manage
Medicare Part B premiums 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, clinician enrollment etc. in many states of the US. This is due to privatization, formerly Blue Cross Blue Shield of Massachusetts (a client of EDS) had the contract, however they lost the contract from HCFA as a result of financial problems. Most of the staff transitioned to NHIC, but took a cut in pay. It should be noted that when a Medicare beneficiary calls they are speaking to a private insurance clerk, not a Federal government employee.
Medicare Part A claims are handled by other private insurers regionally in the US.
Medicare Part D is the same scenario, it has all been privatized.
Medicare Parts A,B,C, & D are run by private insurers, and the contracts can be revoked if the private insurer has fiscal problems, or performance problems in handling the administration of the program.
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''
NMCI Overview '', EDS Website.
Following on to the NMCI type of services, EDS in March 2005 won a US$4 billion contract with the UK Ministry of Defence''
EDS-Led Consortium Signs Contract With U.K. Ministry Of Defence For Defence Information Infrastructure Project '', EDS Website 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...."
Other major clients include
Cargill ,
ABN AMRO ,
Continental Airlines ,
American Airlines ,
United Airlines ,
US Airways ,
Department For Constitutional Affairs ,
Department For Work And Pensions ,
Bank Of America ,
Blue Cross And Blue Shield Of Massachusetts ,
Commonwealth Bank Of Australia ,
Fonterra ,
Guthy-Renker ,
Kellwood ,
Kraft Foods ,
Nextel ,
Phoenix Life ,
OnStar ,
Rolls-Royce Plc ,
Sabre Holdings ,
SKF ,
Sun Microsystems ,
UK Ministry Of Defence ,
Blohm + Voss ,
Telecom New Zealand ,
Telefónica (Brazil),
La Caixa ,
Weyerhaeuser ,
Telstra ,
Xerox ,
International Paper ,
Adidas ,
Allegheny Energy ,
United States Steel ,
Oklahoma Healthcare Authority and
BP ,
Mexicana ,
Bimbo ,
Aeromexico ,
FEMSA ,
GM ,
VITRO ,
SHCP ,
Black & Veatch Corporation .
The implementation of a cross-service payroll system for the UK MoD has been problematic''
EDS's RAF pay system struggles to take off '',
The Register
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.''
The Register 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. ''[http://news.bbc.co.uk/1/hi/business/4460800.stm '', BBC News
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.
Michael H. Jordan, who has served as EDS’ chairman and chief executive officer since March 2003, will continue to serve as chairman and as an executive officer of the company, effective September 1, 2007.http://www.eds.com/news/releases/3832/
