Trammell to take over reins of EDS global real estate.Technology services company, EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. announced it will outsource the management of its global real estate function to Trammell Crow F. Trammell Crow (born June 11, 1914, in Dallas, Texas) is an American property developer who created several famous projects, including Dallas Market Center, Peachtree Center (Atlanta, Georgia), and San Francisco's Embarcadero Center. Company. EDS will begin transitioning its real estate operations in July July: see month. and expects to complete the transition by year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . Financial terms of the agreement were not disclosed. Under the agreement, Trammell Crow Company will provide EDS with global real estate services, including portfolio management, facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. , project management and lease administration. EDS' worldwide real estate portfolio encompasses approximately 800 company-owned or leased facilities totaling 27 million square feet of real estate. The agreement is the latest milestone in EDS' strategy to reduce its real estate costs. The company is on track with its previously announced plan to consolidate facilities globally. Additionally, EDS plans to complete a deal to sell approximately 20 company-owned properties and lease back a portion of them within the next few months. These initiatives are expected to generate approximately $200 million in cash in 2005 and $200 million in cost savings over the next three years, which the company previously announced during its first quarter 2005 earnings call. "Trammell Crow Company was selected through a rigorous, competitive bid process and emerged as the best choice to help us achieve our aggressive cost-savings goals through better asset utilization, consolidation of existing facilities and reduced operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. ," said Frank Boyer, EDS vice president and chief supply officer. "They have a proven track record of driving efficiencies by leveraging their market presence, processes and global reach." EDS will transition about 170 employees globally to Trammell Crow Company in a phased approach starting in July. A small global governance Global governance refers to political interaction and the creation and empowering of international organizations aimed at solving problems that affect more than one state or region, when there is no democratic power of enforcing compliance. team will remain with EDS serving as regional liaisons between the two companies. "We're very pleased to build on our relationship with EDS," said Bill Concannon, Trammell Crow Company's vice chairman. "Our focus has been to build a global solution that could maximize the value of EDS' real estate and achieve significant cost savings while providing high-quality service." |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion