EDS builds up vertical touch

EDS builds up vertical touch

Services provider looks at getting more involved in state government, commercial, energy and resources sector.

EDS will place more emphasis on key market segments and developing mid-market offerings as part of its aggressive growth plans. The news comes on the back of its 2007 financial results, which saw the outsourcing giant record a $40 million pre-tax profit on revenues of $1.2 billion.

EDS A/NZ general manager, Chris Mitchell, said it reshuffled staff into a vertical alignment strategy late last year to focus on four target markets: global and commercial, media and entertainment, government and defence and financial services.

It has appointed Craig Glindemann as global and commercial industry lead, Con Lambropoulos as its communications media and entertainment industry leader, Alan Bennett as government and defence industry leader and Steve Ingram as financial services industry leader.

Glindemann said the commercial and global manufacturing, energy and resources sectors were the least mature of EDS' industry groups in the region, but said it was a very mature market for the company globally.

"There are significant cost pressures for organisations particularly in the mid-market space. We will be very focused on a range of mid-market offerings leveraging EDS' scale in Australia, particularly in the information technology outsourcing and applications market," he said.

On the public sector front, EDS has been historically strong in government defence business, but is now planning to get more involved with state government agencies, Bennett said.

"Traditionally, our government business has been concentrated with core customers, but part of the success in 2007 was actually due to positioning ourselves with new segments," Bennett said.

"Our business is very simple. It is about expanding the markets we operate in and the client base and also expanding the relationship with some of existing clients. I think we are well positioned for that in 2008."

Lambropoulos said human resources and payroll were areas of opportunity for its media and entertainment business. Another key element was digitisation.

"As we move more into a more Internet-based space, it provides the opportunity to move up the value stack on how our clients are doing business," he said. "We have structured a number of solutions stacks called enterprise integration, which is where we have plans in place to reach out to new clients."

EDS reported pre-tax profit of $40 million in the year to December 31, an increase of 53 per cent from the previous year. Total contract signings for the year were worth $1.3 billion, while total revenue hit $1.2 billion.

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