EDS is trying to buy control of Indian outsourcing company Mphasis BFL for $380m (£223m) to strengthen its offshore outsourcing business.
EDS already has its own outsourcing operations in India. It is in the process of making thousands of its staff in North America and western Europe redundant to expand in India and China, where costs are lower.
Mphasis, based in Bangalore, is a publicly quoted company in India and has an IT services and business process outsourcing (BPO) business.
The company has more than 12,000 employees, with about 11,000 of these based in India.
Mphasis has clients in industries covering financial services, transportation, technology and healthcare.
Mphasis is holding a board meeting today to discuss the EDS offer. It is believed the offer is seen as favourable by the board.
EDS wants to acquire about 52% of the company to give it a controlling interest. The deal would be done through an open shares offer.
EDS aims to complete the transaction in the third quarter. Baring Private Equity Partners currently has a 38% stake in Mphasis.