Electronic Data Systems

Electronic Data Systems. Founded in 1962 by the charismatic entrepreneur H. Ross Perot, it became a pioneering force in the Information technology services and Business process outsourcing industry. The company's innovative model of managing Data processing for other corporations revolutionized how businesses approached Information technology and established it as a dominant global player. Its journey from a Dallas startup to a Fortune 500 giant and its eventual acquisition by Hewlett-Packard marked a significant chapter in the history of Corporate America.

History

The company was incorporated in 1962 with an initial investment from H. Ross Perot's wife, Margot Birmingham Perot. Its first major contract was with Collins Radio and Frito-Lay, setting a precedent for managing entire Data center operations for clients. A landmark moment came in 1965 with a massive, long-term agreement with Medicare-administrator Blue Cross Blue Shield Association, which propelled its growth. The firm went public in 1968 and was subsequently acquired by General Motors in 1984 for $2.5 billion, a move orchestrated by GM Chairman Roger Smith to modernize the automaker's technology. This period was marked by cultural clashes, famously depicted in the PBS documentary film The Battle of the Titans. Under Perot's successor, Les Alberthal, the company was spun off as an independent entity in 1996. After a series of leadership changes, including under Dick Brown of Cable & Wireless, it was acquired by Hewlett-Packard in 2008, a deal led by HP CEO Mark Hurd, and was ultimately merged into Hewlett-Packard Enterprise.

Services and operations

The organization's core business was providing comprehensive Information technology outsourcing, managing clients' entire IT infrastructure including Mainframe computer systems, Data communications networks, and Application software. It was a leader in Business process outsourcing, handling specific functions like Claims processing for the Insurance industry and Human resources administration for large corporations. Its global operations spanned major markets, with significant centers in the United Kingdom, Australia, and across Europe. The company developed sophisticated Systems management software and was an early practitioner of Systems integration, helping clients like the United States Navy and General Motors streamline complex technological environments.

Corporate affairs

Its distinctive corporate culture, emphasizing a strict dress code, Ethics, and loyalty, was heavily influenced by the United States Naval Academy background of H. Ross Perot. Headquarters were established in Plano, Texas, at a campus known as the **. The spin-off from General Motors in 1996 was one of the largest in corporate history at the time. Later leadership under Michael H. Jordan and Ron Rittenmeyer navigated the company through the competitive landscape of the early 2000s against rivals like IBM and Accenture. Its acquisition by Hewlett-Packard was part of HP's strategy to compete directly with IBM Global Services in the enterprise services market.

Legacy and impact

The firm is widely credited with creating and defining the modern Information technology services industry, proving that corporations could outsource their critical Data processing functions. Its success demonstrated the viability of large-scale, long-term Outsourcing contracts, a model later adopted globally by firms like Infosys and Wipro. The career of founder H. Ross Perot, including his subsequent presidential campaigns under the Reform Party, was inextricably linked to his reputation built here. Its cultural model of a highly disciplined, meritocratic workforce left a lasting imprint on the IT consulting sector. The company's history is a classic case study in Entrepreneurship, Corporate spin-offs, and the evolution of the Digital Revolution.

Notable projects and clients

Beyond its foundational work for Blue Cross Blue Shield Association and General Motors, the company managed the massive Medicaid Management Information System for multiple U.S. states. It executed a pioneering IT outsourcing contract with the United Kingdom's Inland Revenue (now HM Revenue and Customs). Other significant clients included the United States Navy, for which it developed the Navy Marine Corps Intranet, one of the world's largest private Intranets, and Commonwealth Bank of Australia. It also provided technology services for major events, supporting operations for the 1996 Summer Olympics in Atlanta and systems for the National Aeronautics and Space Administration.

Category:Information technology companies of the United States Category:Companies based in Plano, Texas Category:Defunct computer companies of the United States