Perot Systems

Perot Systems
Name	Perot Systems
Type	Public
Industry	Information technology
Founded	1988
Founder	Ross Perot
Defunct	2009 (acquired)
Fate	Acquired by Dell
Headquarters	Plano, Texas
Key people	Ross Perot; Ross Perot Jr.; William L. "Bill" Perot
Products	IT services, systems integration, outsourcing, healthcare IT, ERP implementation
Revenue	(historical)
Employees	(historical)

Perot Systems was an American information technology services firm founded in 1988 by Ross Perot to provide systems integration, consulting, and outsourcing to clients across North America, Europe, and Asia. The company grew through a mix of organic expansion and targeted acquisitions to serve industries including healthcare, financial services, manufacturing, and public sector agencies. In 2009 it was acquired by Dell Inc. in a move that reshaped competitive dynamics among global information technology service providers and influenced later transactions involving EMC Corporation, Hewlett-Packard, and IBM.

History

Perot Systems was established by Ross Perot after his earlier venture, Electronic Data Systems, became a publicly prominent services firm competing with IBM and Hewlett-Packard. Early growth involved winning contracts with Blue Cross Blue Shield Association affiliates, regional hospitals, and Fortune 500 manufacturers. During the 1990s the firm expanded into Europe, establishing delivery centers and acquiring regional consultancies with footprints in United Kingdom, Germany, and France. Strategic acquisitions in the 2000s included firms with expertise in enterprise resource planning and customer relationship management services, aligning Perot Systems with projects involving SAP SE implementations and Oracle Corporation deployments. The company pursued an initial public offering and navigated the dot-com bubble era while competing against integrators such as Accenture, Capgemini, and CGI Inc..

Services and Products

Perot Systems offered a portfolio that spanned systems integration, application development, managed services, and outsourcing. It delivered industry-specific suites for healthcare clients including electronic health record implementations, revenue cycle management, and compliance support tied to HIPAA standards. For financial institutions the firm provided core banking modernization, risk-management applications, and payment-system integration. In manufacturing and supply chain accounts Perot Systems implemented ERP and MES solutions leveraging partners like SAP SE and Oracle Corporation. The company also developed analytics and business-intelligence engagements using technologies from Microsoft, IBM, and SAS Institute to support decision-making initiatives at clients such as Aetna, Bristol-Myers Squibb, and regional state government agencies.

Corporate Structure and Leadership

The firm operated under a corporate governance model featuring a board of directors and executive officers drawn from technology and business leadership circles. Founder Ross Perot maintained strategic influence, while operational leadership included senior executives who had experience at firms like Electronic Data Systems, Ernst & Young, and McKinsey & Company. Regional leadership teams were established in North America, Europe, and Asia Pacific to manage client relationships and delivery centers. Compensation and stock-based incentives aligned with trends among publicly listed IT services companies such as Capgemini and Accenture to attract talent competing with Microsoft Corporation and Cisco Systems for technical staff.

Major Clients and Contracts

Perot Systems served a roster of large clients across industries. In healthcare, it worked with major providers and insurers including Aetna and multiple hospital systems on electronic record rollouts and billing platforms. In public sector engagements it pursued contracts with state health agencies and defense-related programs, competing for awards alongside Lockheed Martin, Northrop Grumman, and General Dynamics. Corporate customers in financial services included regional banks and credit unions where Perot Systems executed core system migrations and payment-processing upgrades. The company also supported manufacturing clients such as General Motors and pharmaceutical firms including Pfizer on supply-chain IT modernization.

Financial Performance and Acquisitions

Perot Systems reported steady revenue growth through the 1990s and 2000s, reflecting expansion into managed services and outsourcing. The firm pursued acquisitions to augment capabilities, integrating boutique systems integrators and consulting practices to bolster vertical expertise. In 2009 Dell Inc. announced an all-cash acquisition aimed at creating an end-to-end technology services arm combining hardware, software, and professional services—paralleling consolidation moves among IBM, HP Inc., and Cisco Systems. The transaction altered market positions and later influenced related deals such as Dell's acquisition of EMC and subsequent private-equity activity involving Silver Lake Partners.

Legal Issues and Controversies

Perot Systems was involved in contractual disputes and litigation typical of large integrators, including claims over project delivery, intellectual property, and indemnity matters with clients and subcontractors. Regulatory scrutiny around healthcare engagements necessitated compliance with HIPAA requirements and occasional investigations into data-handling practices. The company also navigated employment and labor disputes in delivery centers, similar to challenges faced by peers like Tata Consultancy Services and Infosys during their global expansions.

Legacy and Impact on the IT Industry

Perot Systems influenced the evolution of mid-tier integrators by demonstrating a model combining industry specialization with global delivery. Its acquisition by Dell Inc. signaled hardware vendors' interest in acquiring services capabilities, a trend later seen in strategic moves by Hewlett-Packard and IBM. Alumni from Perot Systems went on to leadership roles at firms including Accenture, Capgemini, Cognizant, and Deloitte, shaping practices in healthcare IT, outsourcing, and enterprise applications. The firm's projects contributed to the broader adoption of electronic health records, ERP modernization, and managed-services sourcing strategies across North America and Europe.

Category:Defunct information technology companies of the United States Category:Companies established in 1988 Category:Companies disestablished in 2009