EDS
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Indian transfusion.
Until last year, EDS, the world’s second largest IT services company was an ‘also ran’ in the race to leverage the cost and skills advantages of Indian offshoring. Only 3,000 of the 16,000 employees involved in its Global Best Shore outsourcing group were based in India. The purchase of a controlling stake in MphasiS BFL in June 2006 changed all that.
Bangalore’s MphasiS, which has quadrupled its revenues in the last five years by providing applications development, business process outsourcing and customer relationship management services, gave EDS access to 12,000 employees, 11,000 in India. At that time, EDS projected it would have 20,000 staff in India by the end of 2006.
The company has extended its ownership of MphasiS to 72%, and it now finds itself in a much better position to be competitive on new bids. Whether it will also try to reduce its costs by offshoring parts of the existing mega-deals it has been famous for is still unclear.
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