EDS bolsters business process outsourcing unit

EDS today strengthened its position in one of the fastest growing segments of the services market with the establishment of a new business process outsourcing (BPO) portfolio organisation. The company tapped industry veteran Guillermo (Gil) Marmol to lead the group as division vice-president.

Marmol is EDS`s third key executive appointment this month, as the company accelerates the build-out of its leadership team.

Under the new structure, EDS will focus on strengthening its portfolio in three key areas of the $235 billion global BPO market: enterprise shared services, customer relationship management and financial process management - where EDS is a long-time industry leader. According to market research firm IDC, the BPO market is expected to grow to $306 billion in 2006. IDC estimates a three-year growth rate of between 9% and 11%.

EDS pioneered the BPO industry more than 30 years ago when it introduced administrative process management capabilities to the nation`s largest Medicaid and Medicare programs and continues to support that business through its government services unit. Today EDS derives about $3 billion in annual revenue from BPO activities including financial process management such as credit card, mortgage and other financial processing; customer relationship management which includes call centre outsourcing; as well as administrative process management services and enterprise shared services.

Under Marmol`s direction, EDS intends to continue to leverage its core BPO base in the rapidly expanding $59 billion enterprise shared services sector which includes human resources, finance and accounting services, and procurement.

Marmol said companies are exploring new ways to outsource non-core processes to achieve economies of scale and eliminate overhead and to trade fixed costs for variable ones. These business drivers are fuelling the growing demand for BPO services.

"Costs associated with non-core business processes continue to rise," said Marmol. "As a result, many companies simply can`t afford to make the necessary investments in people or technology in order to improve the efficiency and effectiveness of their processes. We can help them gain a competitive advantage, cut their costs and give them the ability to use their resources to focus on growing their business."

Marmol said EDS`s recent contracts with Infineon and the Canadian Imperial Bank of Commerce to manage elements of the companies` human resource functions are indicative of the types of deals EDS increasingly will pursue as it builds its Enterprise Shared Services portfolio. Furthermore, he said Infineon chose EDS in part because the company differentiated itself by its Best Shore strategy, which utilises a blend of onshore, off-shore and near-shore delivery resources to help reduce costs and improve service.

For the past three years, Marmol has been president of Marmol and Associates, a Dallas-based information technology consultancy specialising in BPO. He had previously worked at Luminant Worldwide Corporation as chief executive officer; and Perot Systems Corporation where he was vice president and chair of the operating committee. Marmol began his career at McKinsey and Company, where he rose to senior partner. He gained extensive international experience throughout his career, including work in Europe and Latin America.

Marmol, 50, earned an MBA degree from the Harvard Business School and a BA degree in engineering and applied physics from Harvard College.