01/23/2008 09h31

EDS struggles to bring services

Gazeta Mercantil - 01/23/2008

Célio Bozola takes over the office of President of EDS Brasil in a context of great complexity. The strong appreciation of the Real against the Dollar represents pressure against the competitiveness of costs of the Brazilian workforce in relation to other countries that may be destinations of the contracting out of services. Furthermore, it is a moment of tension in view of the scenario of the international economy and to the way the main customers, located in the United States, will react. At such a moment, the market realigns itself, with mergers and acquisitions, and there may be services for the integration of systems, with the need of reorganization of the software infrastructure and the development of applications, adds the vice-president and general manager for Latin America, Eduardo Araujo. Specifically speaking, the position of EDS as a developer of customized applications consists of the great strategic movement, process under progress e which Bozola will dedicate great part of his efforts. Created 45 years ago as the technology service area of GM, the company became specialized in outsourcing the management of the IT Park of its clients and about five years ago it aimed at the outsourcing of software. EDS employees 38 thousand people and intends to reach 45 thousand until the end of the year, in India. But Latin America has the second largest international outsourcing contingent, mainly in order to cater to American clients and to those from Spanish speaking countries. The company is halfway on its strategic plan set up in the second half of 2006, which foresees doubling its sales in Latin America, region to which the Brazilian operations contribute with 55% to 60% of the income. On its turn, Latin America is responsible for nearly 7% of the global businesses, which would correspond to US$ 1.5 billion from the total of US$ 21.268 billion in 2006. At the end of the 3rd quarter, EDS foresaw, for fiscal year of 2007, whose results will be announced in February, a growth to US$ 22 billion and US$ 22.5 billion. In October EDS inaugurated its largest center of the world, in São Bernardo dos Campos (SP), in which US$ 20 million were invested, and where it houses 5 thousand of its 10 thousand employees. "We reduced from 11 to 3 buildings", he affirmed.