EDS - an indication of struggles to come for the IT outsourcing market?
EDS' announcement regarding lower-than-expected revenues for the third quarter of 2002 came as a shock to the IT services industry. Does this signify the beginning of a decline for the outsourcing market or could EDS have avoided its predicament?
On the face of it, it looks like bad news for the IT services market. EDS is one of the elite players in the services market, with the right experience, staff, global presence and expertise to dominate the sector. According to EDS, "IT services spending has come to a screeching halt and our clients are suffering because of this". Its announcement that it is lowering its expected revenues for the year comes as a blow to those who viewed outsourcing as being the crutch for the current poor state of the IT market as a whole.
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This was first published in October 2002