Outsourcers Up for Some Change

So this week there has been a lot of talk boiling up now that officially some changes are in play:

  1. EDS – looking to buy 52% of mPhasis (Bloomberg article), this is a fairly minor deal, but a great opportunity for synergy for both organizations.  EDS’ size and presence in the Financial Services sector and mPhasis same presence in Financial Services, but some good traction in moving to transactional Business Process Outsourcing – leveraging a mature offshore services model.
  2. CSC – Computer Sciences has been rumoured to be on the block, a big piece of real-estate to buy, but with the announcement of people reductions while all the time continuing reasonable contract extensions/starts.  This could be a target of a fund or equity organization, otherwise other than big Government/Millitary contractor, not sure who else.  HP – maybe, Cap Gemini – not sure where they are going so doubt it, EDS – competitor take out, doubt it as well.

As usual there is an eb and flow in the consolidation of any business segment.  Some of the offshore players are now becoming big and stable enough that whether they like it or not they are targets (assuming they can pry the majority shares from the founders/families).

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