Thursday, September 09, 2004

EDS expands operations in Pune

By Aditya Kuber
HADAPSAR, PUNE: Electronic Data Systems Corp (EDS) has opened a solution centre facility in Pune. The company also announced the expansion of its Best Shore global capabilities with the opening of the state-of-the-art centre at Cybercity in Magarpatta. The centre will be spread over almost 90,000 sq feet and has a capacity to seat 770 employees.
This will be the company’s second facility in Pune. The centre is designed to provide EDS’ clients with affordable and flexible application services as well as ensuring consistent delivery systems. The company caters the telecommunications, automotive, manufacturing and financial services industries among others.
Speaking at the inauguration, David Clementz, executive vice-president, Service Delivery, said, “This is a continuation to global service commitment. We are also furthering our presence in India.” The company also has centres in Mumbai, Chennai and Gurgaon.
Speaking about Pune as the choice for the new location, Tom Mattia, vice-president, Global Communications, said, “Pune offers a great skillset and a good base of people to choose from. With the expansion in Pune, we are now have a 1000-strong presence here.”
The company also plans to expand further and is aiming to employ 2,000 professionals in India by the end of this year and raise the number to nearly 5,000 by the end of 2005.
Elaborating on the concept of 'Best Shore' locations, Mattia said these locations were chosen after considering various parameters including social, political and economic conditions prevalent in the country. “We have a total of 90 centres across the world and 22 of these are Best Shore locations. India, and therefore Pune, is also one of them. In fact, we have one in almost every time zone.” With this expansion, India will be home to a fourth of the world’s Best Shore professionals for EDS.
Interestingly, EDS does not have a presence in Bangalore. Scott Ayer, vice-president, Applications Delivery, Asia Pacific said, “The attrition rate in Bangalore is very high and there are too many companies looking for the same people. This was one of the reasons we decided to expand further in Pune.” Ayer also explained that the Pune centre had the capability to expand even more if the need arose.
EDS is using the Pune centre like the others in India and focusing mainly on clients outside India. The work done in Pune is what happens around the world in EDS facilities.
EDS, though, is not very worried about competition from Indian giants. “We are a $20 billion company and at least 20 times bigger than any Indian ‘giant’,” said Clementz. “While the work they do is good and their growth admirable, we are just too big for them to compete with. I am not trying to belittle them, but our global presence across 60 countries is something they will take time to catch up with.”
The company is also looking at new businesses in India and are not averse to a partnership with Indian companies for the purpose. “We have worked with Wipro and Satyam in the past and are not against the idea should the opportunity and need present itself,” said Ayer.
The sensitive issue of outsourcing backlash in the US is “not really an issue” for EDS says Clementz. “We have to realise that it is good to outsource in the long run. We need to put it out there that this would only help create more wealth. Outsourcing has been a part of our company for the last 14 years,” he added. None of the outsourcing, he clarified, would be done at the expense of any jobs. “We certainly do not outsource with that intent.”
Abhay Gupte, managing director, EDS India, said, “It’s about bringing value. We will bring our best practices and values to our operations.”
EDS generated 40 per cent of its revenue from outside the US, mainly Europe. “We have deals for vertical industry segments worth $ 70 billion in the pipeline. Most of our deals are long-term, 5 to 10 years or so,” said Clementz.
Recently, though, the company was dealt a body blow when rating agency Moody’s downrated the company to the first level of jun, BBB. Commenting on the development, Mattia said, “We were very vocal in saying that we are a firmly invested company and the agency’s questions about how we would sustain ourselves and grow were untimely. We went to 250 existing and prospective clients to clarify the situation and the announcement didn’t really hurt us. Standard and Poor’s and Finch, incidentally, maintained our previous high ratings.” Clementz echoed the sentiment saying the change in rating was “unfortunate and not called for. We will end the year strongly.”

As published in The Herald, Pune. (c) The Herald.

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