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Ex-execs slam draconian EDS

The outsourcing company's reputation for a light touch comes to the fore again...

By Joey Gardiner

Published: 7 August 2001 13:21 BST

The whine of ex-employees echoed through the Texas headquarters of EDS yesterday as the former top executives from subsidiary eBreviate spoke freely of their dissatisfaction.

Talking to the Dallas Morning News, co-founders of ecommerce specialist, eBreviate, Sarah Pfaff and Niul Burton found plenty of reasons to complain about EDS management shortcomings.

Burton, formerly CEO of the start-up was quoted: " I was literally having every decision undercut at the corporate level."

He added: "I couldn't promote people, I couldn't adjust their compensation, and it became clear to Sarah and me that EDS was not a good owner as far as this start-up was concerned."

Two weeks ago Burton and Pfaff finally decided enough was enough and quit the firm forthwith. Shortly afterward EDS appointed Tom Slaight - VP of their consultancy division AT Kearney - as the new CEO of eBreviate, without elaborating on why the current CEO had stepped down.

The Dallas Morning News also maintains that four other top eBreviate executives - including the CTO - have fled the firm in the past few weeks.

EDS said it remains committed to the start-up, which it views as a successful performer. Pfaff, formerly VP of sales and marketing for the firm, alleged EDS lacked the commitment to properly incubate it.

EBreviate was set up by AT Kearney in 1999 to provide internet-based auction software for ecommerce transactions. EDS has sunk $30m into the venture and says its software has enabled $9bn of transactions.

EDS does not disclose revenues for eBreviate, but it claims it has over 100 customers.

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