The content on this page and other DCITA document archive pages is provided to assist research and may contain references to activities or policies that have no current application. See the full archive disclaimer.

This is Electronic Data System's (EDS) fifth and final annual ID report, covering the period 2003-04. The report shows that it exceeded all its ID commitments during 2003-04. The cumulative ID achievements for EDS over the five year period 1999-2004 (see page 11) also show that all overall targets have been clearly exceeded.

EDS's annual report was submitted within an acceptable timeframe. This included a short extension to allow final auditing work to be completed. The independent review of this report was conducted as required in accordance with Australian auditing standards applicable to review engagements-AUS902 Review of Financial Reports.

In-scope achievements, 2003-04

Final year in-scope achievements were in line with previous results, with EDS exceeding all targets set.

Out-of-scope achievements, 2003-04

EDS completed five out-of-scope initiatives (detailed below). All targets were exceeded in its fifth year of activity.

Export income was generated in cooperation with SMEs in the Global Partner Solutions program - a significant ID outcome. The high level of employment achieved reflects in part staff taken on by EDS in Adelaide when it acquired a Credit Service Facility from Westpac.

1. E-business Centre

Objective: EDS committed to establish an e-business Centre in Sydney, under a mandate to serve the Asia-Pacific region, supported by offices in Adelaide, Canberra and Melbourne. It will formulate technical and business strategies for the conduct of e-commerce applications in the region.

Status: The Centre has operated for five years in North Sydney (with supporting offices in three other capital cities) and has successfully met all its targets for the year. The Centre acts as a focus for EDS involvement with selected SMEs, to identify internationally compliant Australian products in the electronic business field. This has entailed a significant investment in resources and staff and helped create exports to the Asia Pacific region. SME involvement with the Centre this year exceeded $12 million.

2. Global Partner Solutions Program (formerly SME International Marketing Program)

Objective: EDS committed to establish a national Global Partner Solutions (GPS) program to support SMEs into export markets building on the EDS Channels to Asia-Pacific program and focusing on European and North American markets.

Status: The GPS Initiative again delivered strong results in Year 5, with a number of the program's SME participants gaining high-profile IT work in overseas markets with help from the international network of EDS offices. Local company Proxima Technology earned over $10 million in overseas technology sales this year in the US and UK in alliance with EDS. Tower Technology continued to service its high-profile PC desktop contract with the US Navy in a deal worth $3.7 million annually as part of the GPS program. Total export earnings reached almost $20 million this year, nearly double the target. EDS has informed DCITA that, given the Initiative's success, it intends to continue the program beyond the original five-year commitment, which will benefit both the company and its partners.

3. EDS Credit Services Facility

Objective: EDS undertook to locate one of three worldwide Global Credit Process Operating Units in Adelaide. The facility is a key resource supporting one of EDS' Global Lines of Business, Operations Solutions.

Status: This facility (which was acquired by EDS from Westpac in 2001) is well established in Adelaide and continues to generate a large number of high value-added IT positions with both transitioned and newly recruited staff. EDS is developing processes at the Centre which allow it to provide services to multiple financial institutions, leveraging existing staff and positioning it as a centre of excellence and hub for the provision of EDS credit management services, potentially leading to further expansion in the Asia-Pacific region.

4. Re-manufacture of raster output scanners

Objective: Fuji Xerox committed to re-manufacture and export raster output scanners to Japan, including providing resources to establish the Sydney facility and supply logistics to handle the export business.

Status: Fuji Xerox's facility at Mascot in Sydney is fully staffed and exports to Japan continue. It is the only operation of its type outside the US to be fully accredited to handle the entire re-manufacturing process. Exports remain on target.

5. SME scholarships to EDS executive education course

Objective: EDS committed to fund at least five scholarships each year for SME employees to attend a three-to-four week executive development program aimed at executives in high technology industries and developed by a tertiary institution situated in regional Australia.

Status: EDS funded fifteen scholarships for SME employees to attend an executive development program provided through the National Graduate School of Management at the Australian National University (ANU) in Canberra, one more than last year. Participants came from the ACT, NSW, Queensland, South Australia, Tasmania and Victoria. The participants attended six management modules during 2004. Overall feedback from participants has been very positive, with a total of 48 receiving scholarships over five years for a cumulative investment of $700,000. At least one other industry organisation has expressed interest in using the program as a model for further staff development purposes.

Cumulative ID achievements, 1999-2004

The total in-scope employment over the five years of the contract (eg the sum of the FTE staff-years during the period) was 1898 FTE years, against a target of 1537 FTE years. Total out-of-scope employment reached 4615 FTE years, considerably above the target, 1269 FTE years. Regional employment for both in and out-of-scope sectors totalled 5254 FTE years, against a target of 1674 FTE years.

EDS is the second of the five original IT outsourcing contractors to complete its initial multiyear services contract. All its targets have been exceeded by significant margins. In-scope spending on SMEs has been high in both relative and absolute terms and programs to assist the development of SMEs appear to have had positive outcomes for all parties. Exports have increased and employment has been buoyant.

The ATO has renewed its contract with EDS Australia for a further two years.

  PREVIOUS  CONTENTS  NEXT

• Document ID: 23784 |
• Last modified: 6 February 2008, 11:10am