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EDS (NYSE: EDS) signed more than $270 million in Business Process Outsourcing contracts since late September, one of the fastest growing segments of the services market. The contracts cross four industries -- manufacturing, media and entertainment, financial services, and consumer and retail. Services are concentrated in the financial transaction processing and customer relationship management (CRM) segments.
According to the EDS/IDC Custom Market Size and Growth Forecast, the market for BPO services is estimated to be $241 billion in 2004, growing at a compound annual growth rate of 9 percent through 2006. EDS' global presence, scalable and agile infrastructure, and broad portfolio of business process outsourcing and other solutions help clients worldwide streamline operations, improve customer service and manage costs related to these non-core business processes.
"EDS is building significant momentum in BPO product and service development and delivery," said Guillermo (Gil) Marmol, division vice president, Business Process Outsourcing, EDS. "Our more than 40 years of industry, process and technology know-how uniquely qualifies EDS to provide clients a full scope of business process and other outsourcing services so they can increase competitiveness and focus on their own strategies."
Additionally, IDC recently classified EDS as a CRM services market leader and innovator in its November 2003 "Worldwide CRM Services Competitive Analysis, 2003: Profiles of Leaders and Innovators."
Financial Transaction Processing and CRM Contract Highlights New contract signings, not previously announced, include:
A three-year contract renewal with Greenwich, Conn.-based Boardroom, Inc., publisher of the BottomLine series of newsletters, and BottomLine Personal, one of the largest circulation newsletters published. EDS will continue to provide product fulfillment services in support of the company's marketing efforts for their consumer books and products. Services include order and payment processing, warehousing and distribution, along with call center and Internet service support.
A three-year renewal with home and family media and marketing company, Meredith Corporation (NYSE: MDP), to provide product fulfillment and customer support services. EDS will continue to take customer orders via the Web, phone and fax, process and fulfill the orders, handle returns, and respond to inquiries. Meredith, based in Des Moines, Iowa, has been a client for more than 10 years.
An eight-year add-on agreement for payment services with one of the United Kingdom's largest financial institutions.
Other previously announced BPO contracts in the quarter include Infineon and National Credit Card Center of Taiwan.
As a significant part of EDS' Business Process Outsourcing offerings, financial services transaction processing provides solutions that include integrated payment and clearing, card processing, content management, loan origination and servicing, interactive billing and credit services, insurance administration and services. EDS' CRM Services include consulting, business intelligence, contact center, demand management and distribution and warranty services to help clients grow revenue and reduce costs.
EDS Business Process Services includes customer relationship management (CRM), financial process management (FPM) and administrative and enterprise shared services, which includes human resources, finance and accounting and procurement services.