Executive Summary (This is a document excerpt)

After a long hiatus, Electronic Data Systems (EDS) is reentering the applications consulting market via a newly announced partnership with SAP. Although EDS has been delivering applications development and maintenance to its existing customers for many years, the company severely restricted its market presence following last year's sale of A.T. Kearney and the 2003 dissolution of its Solutions Consulting practice. Is this new deal a signal that EDS is aiming to be an apps and consulting powerhouse along the lines of Accenture or Deloitte? Not necessarily. But it is the next logical step in EDS's recovery. EDS is aiming to compete more effectively with market leaders and Indian outsourcers, acquiring more apps development and maintenance projects. However, it will likely take a step-by-step approach to rebuilding this side of its business to minimize risks.

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