About 1,100 EDS staffers at Medi-Cal centers throughout California currently provide services ranging from invoice processing to claims handling. EDS has operated Medi-Cal, the largest Medicaid program in the nation, since 1988 and handles about 200 million claims in the state each year.
It's been a good week for EDS. On Tuesday, the company landed a multiyear contract to provide a range of IT services to the City of Anaheim, Calif. Terms of the deal weren't disclosed. On Wednesday, it said it had been given a two-year, $160 million extension of its IT services deal with the Australian Tax Office; that deal was set to expire next year.
EDS also reported progress this week on the deployment of the Navy/Marine Corps intranet project, which aims to put 360,000 users in those branches of the armed services onto a common IT platform. The U.S. Marine Corps base in Quantico, Va., has begun the transition to the system, according to EDS.
The rash of deals may indicate that EDS is benefiting from an uptick in the IT outsourcing market--one of the growth areas in the current high-tech market. Technology Business Research analyst Humberto Andrade says he expects revenue generated by IT outsourcing deals to increase 12% to 15% this year compared with last year. EDS is the world's second-largest computer-services firm, ranking behind IBM and ahead of Computer Sciences Corp.