EDS has appointed Rob Baldock to head its financial-services industry practice. Baldock, who spent 23 years at Accenture, where he oversaw the firm's financial services-specific practices, will lead EDS's financial-services business, which is broken down into banking, capital markets, credit and real estate, and insurance. Baldock joined EDS last year and previously was the global industry practice leader in EDS' solutions consulting business. He's one of several appointments EDS has made to strengthen its vertical industry offerings under the heading of a consolidated Global Industries group. Scott McConnell, who also joined EDS earlier this year, will remain as the leader of EDS' insurance practice and will report to Baldock.
EDS is seeking to regain its footing after a period of difficult earnings results and reported problems with some of its large consulting contracts. It recorded a third-quarter loss of $600,000 and restated its earnings downward by $2.24 billion retroactive to the first quarter as a result of an accounting change. Sales at its A.T. Kearney professional-services unit dropped 26 percent in the third quarter to $192 million.
One of the steps being taken by EDS is to align its consulting and outsourcing businesses. It's moved 40,000 industry-specific consultants into the line businesses that provide IT outsourcing services (network and communications, desktop management and apps management) and business-process outsourcing services, a company spokesman says. EDS has IT services contracts with a number of insurance companies, including CIGNA, Sage Life Ltd., California State Automobile Association Inter-Insurance Bureau, California HealthCare Foundation, Wellmark, and many banks such as Bank of America, Abn Amro, Bank One, Barclays, and Royal Bank of Scotland. Revenue from the financial-services industry accounted for 14 percent of total revenue last year. EDS also administers 33 percent of all U.S. flood insurance claims.