EDS Focusing on the Big Boys
PLANO, Texas - EDS is doing what it said it would do after selling off its community bank and credit union data processing businesses - it's focusing on large clients. EDS, which has been beaten up in recent years with weak earnings, mild stock scandals, and massive layoffs, recently announced an eight-and-half-year, $1.1 billion managed network services outsourcing agreement to integrate the communications infrastructure for recently acquired FleetBoston Financial into Bank of America's voice and data network. EDS assumed responsibility for the Bank of America network in early 2003 as part of a 10-year, $4.5 billion contract. According to EDS, when the integration is complete, Bank of America's voice and data network will connect more than 180,000 associates, nearly 5,700 retail banking centers spanning 29 states and the District of Columbia, more than 16,500 ATMs, and facilitate Internet and telephone banking. EDS' work in the financial services industry accounted for approximately 16% of the company's revenue in 2003. More than 15,000 EDS employees work on finance-related projects in 30 countries.