Electronic Data Systems (EDS) has released details of its plans to
rely more on facilities located outside the US to provide
application development and call centre services to users on a
global basis.
EDS also said it will standardise its application services
operations worldwide as part of the five-year, $100m (£63m) Best
Shore effort. The strategy was designed to help give EDS "a
consistent delivery model worldwide" for its services, said Paula
Kruger, president of the company's customer relationship management
division.
EDS currently supports customers through more than 250 facilities
around the world, but Kruger said the hardware, software and
service methodologies it uses sometimes differ from location to
location. Many EDS customers have their own facilities around the
world and want more consistency, she added.
As part of the Best Shore initiative, EDS plans to open a series of
new offshore IT service centres. "We'll be looking at where are the
optimal locations to serve clients, where they need it and when
they need it," Kruger said.
A call centre is scheduled to open next spring in India, with about
200 workers, said Kruger. EDS hopes to expand this to 700 employees
by 2004.
EDS signalled its increased offshore focus last month when it
disclosed cutback plans after reporting third-quarter results that
were well below expectations. The company said then that it would
shift 1,500 US-based jobs to lower-cost facilities in other
countries.
Best Shore also includes steps designed to rein in expenses. For
example, Kruger said EDS officials hope that standardising the
technology used in its facilities will result in cost savings that
can help keep down the prices the company charges.
Andrew Efstathiou, an analyst at The Yankee Group, said EDS's
standardisation strategy is similar to the approaches taken by
other IT services providers, including IBM and Accenture.
"Certainly, this type of co-ordinated delivery is not anything
new," he said. "I would say EDS is promoting this... because they
need to control their costs - and pricing as well."