SINGAPORE--More competition in the outsourcing space? No sweat, says EDS, because it has been there, done that and is innovating to stay ahead of the curve.

William Woo, director of operations for Southeast Asia, EDS, is unfazed about the growing competition from the likes of the other Big Six (outsourcing service providers) and emerging players such as Atos Origin, as well as the Indian contenders.

"More activity (targeted against competitors) is the best proof point of the trends in outsourcing that EDS has identified and pioneered for some time," he told CNETAsia.

Woo believes the company's independence is its "one significant advantage" compared to its Big Six competitors, which include IBM and Hewlett-Packard.

"EDS is not constrained by the type of solutions it can recommend and can thus offer unbiased counsel to its customers," he explained. "With no significant business interests in hardware or software, there is zero risk to our clients that they will be encouraged to buy technology from their services vendors."

In response to suggestions by Hewlett-Packard that there is a Window of opportunity for the company, as EDS clients' 10-year outsourcing service contracts are about to expire, Woo said there is little cause for worry.

"This is not a threat to EDS," he said. "Our solutions are evolving to meet the ever-changing needs of our clients. As a pioneer in IT outsourcing, we know better than others what our clients and the industry need."

He highlighted his company's Services Excellence Dashboard product, which its clients use to monitor service levels, as an example of how EDS continuously innovates to meet its clients' changing needs.

Contrary to what his competitors are saying, EDS has signed on new business, Woo revealed. This list includes ABN Amro, VicRoads in Australia, and Government of Singapore Investment Corporation. EDS has also extended contracts with organizations like the Australian Taxation Office, Bumpitra-Commerce Bank Berhad, New Zealand Inland Revenue Department, Taiwan Air Cargo Terminal, Australian Customs, Ministry of Social Development New Zealand, and NTT Communications.

Commenting on the market's growing preference for multi-sourced deals compared to single-sourced ones, Woo attributed the market shift to "rising dissatisfaction with IT outsourcing and business process outsourcing (BPO) vendors".

Each vendor, he said, has vested interests and encourage its clients to buy their own hardware and software. "This has led to the reported trend of clients seeking out multiple vendors in an attempt to construct for themselves, a complete solution offering the best returns on investment for each outsourced segment," he noted.

"However, it doesn't mean that single-vendor deals are gone," he added. "Companies like EDS, being unbiased in its ITO and BPO offerings, will tap into a network of best-of-breed suppliers, such as Microsoft, Dell Fuji Xerox and EMC, and can provide exactly what customers are looking for."

EDS closed its first-fiscal quarter ended Mar. 31, 2005, on a high note. The Plano, Texas-company reported net income of US$4 million, compared to a year-ago net loss of US$12 million; revenues were US$4.94 billion, down 5 percent from US$5.2 billion.

Although Asia's revenues for the quarter declined 2 percent to US$303 million, compared to the same period a year ago, the region posted an operating profit of US$13 million.

The company worldwide signed US$7.1 billion in contracts in the first quarter, compared with US$3.8 billion a year ago, excluding signings by PLM Solutions which EDS acquired in the second quarter of 2004.

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