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April 7, 1997updated 05 Sep 2016 12:31pm

EDS RUMORED TO BE BUYING PART OF DEC’S SERVICES BUSINESS

By CBR Staff Writer

Grapevine gossip has Electronic Data Systems Corp buying at least a part of Digital Equipment Corp’s services business – facilities management and perhaps systems integration. The rush into services by major hardware manufacturers is likely to turn out to be something of a chimera if it is relied upon as a major new source of profits growth (the market is too crowded, others are much more expert at it than hardware manufacturers, outsourcing is a management school fad likely to fade away within five years) it is a useful extra string to any large company’s bow. But Electronic Data Systems is hungry and DEC has consistently shown itself so insatiable for cash over the past four years that even the most off-the-wall suggestions have to be regarded as quite possible.

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