EDS Launches Business-Process-Outsourcing Group

It's combining several groups into one division headed by Guillermo Marmol and will try to establish a bigger presence in a growing market.
EDS said Tuesday it has combined several of its business-process-outsourcing groups into a new division led by Guillermo Marmol, formerly president of BPO consulting firm Marmol and Associates. EDS "needs to think about BPO on a strategic level," Marmol says of his role as VP for the new BPO portfolio group.

In an effort to establish a bigger presence in a market that research firm IDC says will grow to $306 billion by 2006, Marmol says EDS will focus on strengthening its already-significant customer-relationship-management and financial-process-management practices while looking to become a player in markets such as human-resources outsourcing that are dominated by entrenched players.

As part of the strategy, Marmol says, EDS is expanding a number of service centers in Canada and India. "It's a factory approach that gives us a cost advantage over most competitors in the market," Marmol says. Business-process-outsourcing work accounts for about 13% of EDS's total revenue, but Marmol says that figure will increase as the market heats up.

Observers say EDS has a solid foundation in business-process outsourcing but has fallen behind competitors such as Accenture and IBM when it comes to bringing out new service offerings. Bringing in an outsider to head a new group dedicated to the market is a positive sign, says Humberto Andrade, a Technology Business Research analyst. "They have been sitting idle for a while," he says, "so this is a move they could not postpone any longer."

Editor's Choice
Brandon Taylor, Digital Editorial Program Manager
Jessica Davis, Senior Editor
Terry White, Associate Chief Analyst, Omdia
Richard Pallardy, Freelance Writer
Cynthia Harvey, Freelance Journalist, InformationWeek
Pam Baker, Contributing Writer