Perot seeks to make IT investment

US billionaire, Ross Perot, has announced plans to invest in new software companies and technologies.

The ex-presidential candidate's company, Perot Systems, has until now focussed on IT outsourcing and services. Perot said the investment plans are part of a vigorous expansion programme.

However, Giga Information Group analyst, Will Cappelli, said it is a defensive move. and claimed Perot is looking for new markets to compensate for expected losses in his core business.

He said: "This demonstrates a genuine slowing in the outsourcing market. In the early 1990s, profit margins in the outsourcing market were around 20 per cent. By 1998, they were down to 8 to 10 per cent, although revenues remained high. Early this year, revenues started to decline, too."