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Technology Stocks : EDS - Recent pullback a buy opportunity???
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To: NICVIC who wrote (1094)7/31/1998 11:36:00 AM
From: Daniel G. DeBusschere  Read Replies (3) of 1841
 
EDS is getting back to basics as I see it -
EDS is emphasizing relationship selling by pushing authority down and giving account managers responsibility for customer satisfaction, employee satisfaction, and revenue growth. Also, by investing $75-$80 million in SAP deployment in GM and another big unspecified chuck in EDS (Part of the huge huge SG&A expense), EDS has thrown in the towel on the "mainframe paradigm" and embraced what the customers want and are willing to pay for even if its not the most cost effective way to run a global IT organization. This means that 110,000 EDS IT employees will not only be able to spell SAP but will understand how to sell it, install it, operate it and make the big bucks that CEOs, CIOs, etc are willing to pay for answers to questions like "how many grandmas in South Forkes buy SUVs, etc". It is hoped that these big investments will tapper off and the resultant expense reductions will show up in increased earnings. I do not know if the 24% revenue increase in non-GM based business was the result of these actions, but I do know its the right way to go for EDS in the current business environment. I see only upside from this point baring an economic disaster. Also, EDS is ripe for a major tender at current price levels in my opinion.
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