EDS and TP form joint venture

Moving to address the growing human resources outsourcing market, Electronic Data Systems is teaming with Towers Perrin on a joint venture. In addition, Towers Perrin signed a 10-year $365 million deal with Electronic Data Systems to outsource its global network, desktop and hosting environment. EDS will also develop and manage some applications for Towers Perrin under the contract. The new company, yet to be named, will be 85% owned by EDS and 15% owned by Towers Perrin. Steve Bohannon, EDS' vice president of HR services, will lead the new company, which will be governed by a board of directors from both companies. Under the deal, EDS will pay an estimated $420 million to Towers Perrin.

This deal has the potential to alter the landscape of the HR Outsourcing and Business Process Outsourcing industry drastically.