EDS buys IT management consultancy for $89m

Electronic Data Systems (EDS) has acquired IT management consultancy the Feld Group, a purchase intended to strengthen EDS'...

Electronic Data Systems (EDS) has acquired IT management consultancy the Feld Group, a purchase intended to strengthen EDS' executive ranks and IT-transformation and business process outsourcing services.

EDS bought the Feld Group for about $41m in cash and $48m in restricted stock, warrants and options.

EDS will gain skills, staff and software for reorganising companies' IT departments, as well as two senior executives who are stepping into a pair of new and key positions at EDS.

The Feld Group, founded in 1992, has among its success stories the transformation of the IT departments such as PricewaterhouseCoopers. Most of its staff of about 60 people is transferring over to EDS.

The Feld Group's value proposition has traditionally been that it can deal with chief information officers at their level, said Gartner analyst Lorrie Scardino. "They're very focused on the chief information officers and on alignment of business and IT. That's what they do best," she said.

Charlie Feld, founder, chief executive and president of the Feld Group, and Steve Schuckenbrock, chief operating officer of the Feld Group's consulting business, will lead two of EDS' three new operating groups, reporting to EDS chairman and chief executive officer Michael Jordan.

Feld will become executive vice-president of EDS' Portfolio Management group, while Schuckenbrock steps in as executive vice-president of the Global Sales and Client Solutions group.

These three operating groups replaced multiple lines of businesses. The new operating structure, announced by Jordan last year along with other restructuring measures, is meant to simplify the way EDS interacts with customers, improve how it delivers services and sharpen the focus of its services portfolio on EDS' core outsourcing strength.

Juan Carlos Perez writes for IDG News Service 


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