Revenue IT partner facing staff exodus

Link: Inland Revenue dumps EDS

The Times reported today that sources close to the deal expect some key senior technologists that are responsible for the tax and national insurance systems to exercise their rights to stay at EDS.

EDS is reported to be offering key employees lucrative promotions in order to retain their employees.

Meanwhile in a further blow to the French IT services giant, CGE&Y last night issued a profits warning.

‘Based on preliminary indications on the Group’s activity at the end of November, the fourth quarter revenue should be below the guidance provided by management on October 20th; however, it should show a slight growth compared to the third quarter,’ a statement said.

‘Consequently, the operating profit for the second half-year should reach 2% to 3% of revenue. The Group will disclose 2003 full year results on February 26.’

Related reading