14 May 1997
As Gulliver found on his travels, size is always relative. Critics of services giant EDS have condemned its monopolistic hold on government, but according to the latest Holway Report, EDS is Lilliputian in terms of market dominance.
Holway's latest outsourcing top 10 shows that EDS has easily the largest share of the UK market (22%). But its share of the overall UK software and services market is a mere 6% - 'the lowest percentage share held by the lead supplier in any major market, from cars to telecommunications, in the UK', according to the report.
The report's author, Richard Holway, said EDS recently issued a profit warning. Its stock market value of about $16bn is only marginally above its annual revenues of $14.4bn.
Capita (eighth on Holway's outsourcing list) has a market value three and a half times its turnover. 'It's true that only the big companies can get the big government contracts,' said Holway. 'But some companies see them as a poisoned chalice.'
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