Magazine article American Banker

In Brief: EDS Hails Tech Outsourcing Trend

Magazine article American Banker

In Brief: EDS Hails Tech Outsourcing Trend

Article excerpt

Financial companies are showing more interest in outsourcing technology operations and business processes, says Robert Baldock, the new head of Electronic Data Systems Corp.'s industry group.

The Plano, Tex., technology giant has struggled over the last 18 months, losing key contracts, restating its financial results, and making changes in its executive suite. But in an interview last week, Mr. Baldock said he thinks such problems "are behind us."

He cited EDS wins such as a five-year, $1.3 billion agreement last December to provide technology services and applications development to ABN Amro Holding NV in the major countries where the Dutch company's wholesale unit operates. Also last December, he noted, EDS landed a $4.5 billion contract to upgrade Bank of America Corp.'s voice and data network.

This September, EDS announced a nine-year agreement to provide additional managed network outsourcing services to B of A. And last month it announced a three-year, $71 million extension of its contract to provide human resources services to Canadian Imperial Bank of Commerce.

But last December, J.P. Morgan Chase & Co. selected International Business Machines Corp. for a seven-year contract worth more than $5 billion to manage its data processing infrastructure, including data centers, help desks, and data and voice networks. (EDS had been expected to win that deal.) And last November, Procter & Gamble Co. backed away from a plan to sell its back-office operations to EDS. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.