Executive Summary (This is a document excerpt)

Electronic Data Systems (EDS) has announced an alliance with Cognizant Technology Solutions in which Cognizant will provide EDS clients and prospects with application development and support services. According to EDS, Cognizant was selected for this role because of its deep legacy modernization and portfolio analysis competency, its offshore capability, and its healthcare and financial services expertise. Despite the fact that EDS has several development facilities in India and around the globe, the company is clearly struggling to compete in the very hot Indian global applications outsourcing market. This alliance is a boon to EDS customers, who will now have access to Cognizant's very mature offshore outsourcing and applications capability, and to EDS, which will now have a more credible offshore application capability to bring to large bundled outsourcing deals. However, both EDS and Cognizant face risks that could easily negate the benefits of this alliance.

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