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EDS' troubled legacy of failed IT projects

By | May 13, 2008, 8:58am PDT

Summary: Observing the news that HP is acquiring EDS, perhaps it’s time to reflect on EDS’ troubled history with IT projects. I’ve written about a number of failed projects where EDS played a role. Warning, some of these stories are ugly.

Observing the news that HP is acquiring EDS, perhaps it’s time to reflect on EDS’ troubled history with IT projects. I’ve written about a number of failed projects where EDS played a role.

Warning, some of these stories are ugly:

An anonymous reader sent me the following email specifically regarding an EDS government contract:

In [my state], we have had numerous problems with outsourced IT projects, cost over runs, failure to deliver on time, and products that don’t work. The most frustrating aspect is that there seems to be no sanction for failure — those same companies turn around and sell the same poor product to other states and then get new contracts from our own state.

This sentiment echoes some of the stories I’ve written about EDS:

EDS has proven itself to be anything but a model corporate citizen, and without doubt managing such a behemoth is a difficult and challenging task in the best of circumstances. Nonetheless, such hare-brained schemes remind one of the fox guarding the hen house. Ah, the power of large corporate legal departments with sufficient resources to successfully fight the government.

Let’s hope HP does better than EDS in regards to IT failure.

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Michael Krigsman is a recognized authority on the causes and prevention of IT failures.

Disclosure

Michael Krigsman

Michael Krigsman writes and speaks about technology in a manner that most observers consider to be fair and balanced. Michael believes that writing about IT failures, which often have complex causes, creates a unique obligation to be reasonable and accurate in both reporting and analysis.

Michael maintains active personal and professional relationships with enterprise technology buyers, vendors, analyst firms (or individual analysts), consultants, and system integrators. As CEO of Asuret, Michael sells and delivers paid services to members of these same groups.

Vendors regularly reimburse Michael's out-of-pocket travel expenses to attend industry conferences and events. Conference organizers frequently waive entry fees when Michael attends industry events. Michael often speaks at industry conferences and events.

He is a member of the Enterprise Irregulars, a loose association of consultants, investors, industry representatives, analysts, and users of enterprise software.

For daily updates on Michael's activities, follow him on Twitter.

Biography

Michael Krigsman

Michael Krigsman is CEO of Asuret, Inc., a consulting company dedicated to reducing technology implementation failures. Asuret's suite of software tools improve the success rate of enterprise software deployments by quantifying and measuring governance issues that cause most project failures. Michael led the research effort underlying Asuret's model of collective intelligence and its practical application to reducing IT failures in consulting environments. He is a recognized authority on the causes and prevention of IT failures and is frequently quoted in the press on IT project and related CIO issues. He is considered an enterprise software industry "influencer" and provides advice to technology buyers, vendors, and services firms.

Previously, Michael served as CEO of Cambridge Publications, which develops tools and processes for software implementations and related business practice automation projects. Michael has been involved with hundreds of software development projects, for companies ranging from small startups to Fortune 500 organizations. Michael graduated with an M.B.A. from Boston University and a B.A. from Bard College. He is a Board member of the America's Cup Hall of Fame and the Herreshoff Marine Museum in Bristol, RI.

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RE: EDS' troubled legacy of failed IT projects
EDS_PM 23rd Oct 2008
I was a Senior Project Manager at EDS for 7 years (2001-2008), and I've personally been involved in two grossly mismanaged projects involving 3COM and Borland. One project required firing the entire PM staff and bringing in a new staff of PMs...to sort things out. I was there for the clean up...what a mess. EDS PM Leadership has very few experienced PMs...actually having worked in a successul PMO...writing processes that didn't make the PM effective...and actually contributed to the PMs being disfunctional...along with the entire delivery process to the client. I can attest to the mess!!!
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EDS' troubled legacy of failed IT projects
Loverock Davidson 13th May 2008
This is a pretty good reason why outsourcing your IT doesn't work. Way too many complications and its just not as efficient. Don't get me wrong, outsourcing works to some degree, like hiring cable monkeys to string up the cat5,6 through the walls and ceiling. That is their speciality and do it faster and quicker than the local IT team. But running the whole IT department, its just not feasible. And its not just EDS with these problems.
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Not surprising Mike
betelgeuse68 13th May 2008
Having worked once upon a time for Andersen Consulting, now Accenture (weren't they lucky), I can tell you such firms are very long on sales (95%) but very short on delivery (5%).

Competent individuals as far as getting real work done are few and far between.

-M
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I could go on for days about the huge mess created by the Navy and EDS called NMCI (Navy Marine Corps Intranet) that has wasted over 9 billion dollars of the taxpayers' money. It is bad enough for the people just doing Office and email, let alone people trying to do research and development. 15 minutes for some systems to boot, no application can be installed unless it went through many months of costly testing (by then a new version was out), updates being pushed out while you are working, endless datacalls providing the same information over and over, etc. I'd love to know how the Navy is saving money when we are paying more for the systems/support, have a large local support group just to support the NMCI contract and fix the messes created, and now have a research and development network along side NMCI that is supported by the pre-NMCI support people so we can actually get some real work done. Oh, and EDS does their own customer satisfaction surveys which are then used to determine how much the Navy pays them. The Navy is just as much to blame as EDS because they thought everyone could do their work with just Office and email, requested 700MB of network storage for users and 50MB mailbox limits. High turnover rates with the support staff, turn overs with the program managers, government and contractor personnel continuing to perform functions that were supposed to be supported by EDS... it just goes on and on.
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One additional note
imcad 13th May 2008
Even though it is the Navy Marine Corps Intranet, the two are acutally separate, with separate accounts and separate address books. You can't use your Navy NMCI account on a Marine Corps NMCI system and vice versa. The Navy should really be proud.
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And what about...
Unrepresented 13th May 2008
The thousands of IT outsourcing projects EDS has gotten right? Kind of a "what have you done for me lately" mindset reflected here. Find a list of EDS clients and you can probably find about the same split of satisfaction/dissatisfaction as you will with IBM, Fujitsu, Accenture, ACS, Wipro, etc.
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Michael,

It is obvious you have an axe to grind with EDS. As a long-time employee of EDS in the Healthcare practice, I would suggest that your expressed opinions are nothing but shrill histrionics. EDS has always been a company that takes exceptional care of their people. Have there been problems with some implementations? Yes. But point me to one other major systems integrator that has not has bumps in the road. Issues with IT projects are legendary, but as a voice inside EDS I know the company always goes the extra mile to implement a quality project. Suggestions to the contrary simply are not balanced. EDS, in my opinion, has been the finest IT company in the industry. I left EDS twice before chasing bigger paychecks, and always came back because the EDS culture is unique, professional and it is generally a joy to be a part of the environment. For each Wisconsin you parade before others to pump up your own business, there are ten projects that EDS has marshalled to success. There are major Medicaid clients in the US who do not want to do business with anyone BUT EDS. Your remarks are unsubstantiated and disingenuous. Get a life.

Gerry Young
EDS IT Consultant Architect
860-255-3833
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Even the business press has mentioned that EDS has significant project failures with respect to EDS government projects. And that HP will be inheriting those problems.
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I was a Senior Project Manager at EDS for 7 years (2001-2008), and I've personally been involved in two grossly mismanaged projects involving 3COM and Borland. One project required firing the entire PM staff and bringing in a new staff of PMs...to sort things out. I was there for the clean up...what a mess. EDS PM Leadership has very few experienced PMs...actually having worked in a successul PMO...writing processes that didn't make the PM effective...and actually contributed to the PMs being disfunctional...along with the entire delivery process to the client. I can attest to the mess!!!

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