Beleaguered computer services giant Electronic Data Systems (EDS), which is slashing jobs amid sluggish sales, has pushed further into China with a string of large business automation deals.
The Texas-based firm last week announced contracts to supply its product lifecycle management (PLM) software to three top mainland manufacturers: the Langchao Group, Founder Technology Group and Beijing Foton Motor. Financial details were not given.
Officials said the Langchao Group project, covering several thousand licences of EDS' Teamcenter PLM software, is China's largest PLM deployment to date.
PLM refers to a set of software and services used by enterprises to integrate all activities required to develop, model, track, manage and control products, as well as to manufacture, sell, maintain and retire these products.
Langchao Group, with revenues worth US$775 million last year, is the mainland's leading maker of server computers and provider of industrial information technology applications and services. The company, which has 100 offices across the mainland and 1,500 application developers, has also signed on with EDS to distribute its PLM products and jointly develop unique PLM programs for the Chinese market.
Hans-Kurt Luebberstedt, Asia-Pacific president for EDS' PLM Solutions unit, said the Langchao partnership would strengthen the PLM support organisation of EDS in Asia. 'We recognise the important role China plays in the future of this region,' he said.
Research firm International Data Corp predicted the global demand for PLM software and services would become a US$11 billion market by 2006.