- Client demand fuels opportunity to build and expand industry-based SAP
application-based consulting practice
- Expanded relationship gives EDS access to SAP-developed tools, training
and implementation methodology for SAP applications, services
- Strategic relationship focused on SAP application-centricity with EDS
enabling consulting practice
PLANO, TX, Oct. 30 /CNW/ -- EDS, a leading global technology services
provider, today announced an expanded relationship with SAP AG (NYSE: SAP),
the world's leading provider of business software, whereby SAP will support
EDS in the strategic expansion of its global SAP application-based consulting
By collaborating with SAP on client engagement training and techniques
that will drive the long-term growth of its consulting practice, EDS will
further enhance its existing SAP capabilities and bring end-to-end SAP
consulting and systems integration to the market by early 2008. Additionally,
EDS will work closely with SAP's Global Partner and Ecosystem Group for market
penetration and value-added customer offerings.
SAP will see an increase in SAP consultants and systems integrators into
the global marketplace to help fulfill the current demand for SAP
applications. EDS and SAP also expect to work jointly to target EDS' global
client base where SAP applications and services can penetrate existing
infrastructure or applications accounts.
"We expect our new global SAP consulting practice to further elevate EDS'
position in the applications development and IT consulting marketplace to help
clients better align their technology systems with their business strategies,"
said EDS President and Chief Executive Officer Ron Rittenmeyer. "We believe
our new tools, training and content, when coupled with our existing
applications management and legacy programming expertise, will give us a
unique value proposition and competitive advantage as we move up the value
"We are pleased to strengthen our long-standing relationship with one of
the world's leading IT services companies and support EDS in building a global
consulting practice," said Ed Lange, executive vice president and chief
customer officer, SAP Americas. "EDS' broad and deep deployment of SAP
applications to a multitude of global clients will enable the company to
compete more effectively in the enterprise applications market."
"We look forward to helping EDS create a truly global, industry-based SAP
consulting practice which will help customers modernize and manage their IT
landscapes," adds Manfred Heil, senior vice president, Global Ecosystem and
Partner Group, SAP AG. The global expansion of EDS' practice represents the
latest step in the continuing deployment of our strategy and unique commitment
to further our capabilities in the marketplace."
"EDS sees a tremendous market opportunity in industry-based SAP
application consulting and systems integration globally and within our own
existing client base," said Charlie Feld, senior executive vice president, EDS
Applications Services. "The global demand for SAP resources has never been
greater, and the market will continue to grow for the foreseeable future. We
believe EDS is uniquely positioned to meet this demand while enabling clients
to migrate from an environment of legacy systems to a modern enterprise
Feld added that the enhanced SAP relationship shows EDS is aggressively
moving up the value chain in applications services. Earlier this month, the
company launched a global software testing services offering. Feld indicated
that more announcements in the applications services space should be expected
shortly. "EDS made a commitment to expand its presence in high-end
applications development and consulting. This announcement is perhaps the
strongest proof point to date that we are executing this strategy," said Feld.
EDS and SAP have adopted a strategic plan to build out EDS' global SAP
consulting practice in the near term, including extensive training, recruiting
and tools development; joint sales opportunities such as leveraging SAP's
regional sales, alliances and services resources; joint marketing strategies
and plans for field sales and services; and joint sales and pipeline tracking.
According to Gartner, demand for ERP (Enterprise Resource Planning)
project-based solution implementation services is at a critical inflection
point in 2007 as enterprise buyers are faced with difficult choices that will
lay the foundation for the user's application life cycle choices.
Gartner estimates the worldwide Consulting and Systems Integration (C&SI)
market will grow from $261.7 billion in 2006 to $365.2 billion in 2011
(reflecting a compounded annual growth rate of 7%). Moreover, the North
American market for ERP solution implementation services (the combination of
consulting and systems integration services related to ERP initiatives) grew
more than 5% year over year from 2005 to 2006, indicating ongoing buyer
interest in ERP services.
EDS and SAP's Long-standing Relationship
For more than 17 years, EDS and SAP have partnered to deliver business
software solutions that reduce time-to-market and lower clients' total cost of
ownership. EDS has been a SAP client since 1997, deploying numerous SAP
solutions to a user population of approximately 873,000. Furthermore, SAP
helps deliver best-in-class enterprise applications as an essential component
of the EDS Agile Enterprise Platform and collaborates on industry solutions
and enterprise business applications. As a member of the EDS Agility Alliance
-- a coalition of companies globally recognized for their quality, products
and value to clients -- SAP provides end-to-end enterprise applications
services and the standard underlying applications platform for EDS' leveraged
HR, F&A and Procurement BPO utility. The alliance with SAP has helped generate
more than $1 billion in total contract sales for EDS.
EDS (NYSE: EDS) is a leading global technology services company
delivering business solutions to its clients. EDS founded the information
technology outsourcing industry 45 years ago. Today, EDS delivers a broad
portfolio of information technology and business process outsourcing services
to clients in the manufacturing, financial services, healthcare,
communications, energy, transportation, and consumer and retail industries and
to governments around the world. Learn more at http://eds.com.
The statements in this news release that are not historical statements,
including statements regarding the amount of new contract values, are forward-
looking statements within the meaning of the federal securities laws. These
statements are subject to numerous risks and uncertainties, many of which are
beyond EDS' control, which could cause actual results to differ materially
from such statements. For information concerning these risks and
uncertainties, see EDS' most recent Form 10-K. EDS disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Travis Jacobsen -- EDS
For further information:
For further information: Travis Jacobsen of EDS, +1-972-797-8751,
email@example.com, Web Site: http://www.eds.com