In the mid-1990s, EDS undertook a bold experiment: it tried to marry its existing IT shop with an operations management firm, A.T. Kearney.
The goal was, in part, to use A.T. Kearney's C-suite relationships to open the door to bigger EDS IT projects. It didn't pan out. The cultural issues became too much to overcome.
During the 1980s and 1990s, A.T. Kearney had been one of the profession's fastest growing firms, consistently doubling its revenue every three years. Revenue compounded at more than 25 percent annually between 1992 and 1999.
But under EDS, the numbers weren't as good. As of mid 2005, when EDS allowed A.T. Kearney's management to buy their way out, the firm's revenue had fallen in 11 consecutive quarters (on a year-over-year basis). EDS later sold to HP in May 2008.
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