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HP Acquiring EDS: What Does This Mean for Customers and the Outsourcing Market? (PDF-157kb)
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HP Acquiring EDS: What Does This Mean for Customers and the Outsourcing Market? Authors: Robert E. Zahler, Meighan E. O'Reardon, Anne M. Friedman
Hewlett-Packard (HP) has announced plans to acquire Electronic Data Systems (EDS) in a deal expected to be finalized during the second half of 2008. The announcement signals the most significant change in the information technology services market in a number of years. Clients with active agreements with either HP or EDS have time to assess the impact on their organization. Additionally, there is unlikely to be a significant impact on pending proposal processes since, until the acquisition is finalized, EDS and HP must by law continue operating as separate entities. The creation of this combined services and hardware firm is a positive development for the outsourcing market. HP, along with EDS, has the potential to become a formidable competitor to IBM.
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