The consulting arm of EDS will move to the Dallas suburbs to coordinate more closely with its parent. This A.T. Kearney, the consulting arm of technology-services giant Electronic Data Systems, is about to get a lot closer to its parent. About 10 senior executives, including the German-born Ostermann, will make the move by early summer, while several hundred administrative employees and consultants will remain at the company's current Windy City home.
Some analysts blame the difficulties of that integration for lackluster results of late.
Weak results in the U.S. offset double-digit gains in other parts of the world, such as Japan, South America, and Germany. Yet despite the slow revenue growth, Ostermann insists the integration is on track and working well. Even while the rest of the industry braces for a slowdown, Ostermann insists Kearney is ready to rev up its growth. Attrition has returned to normal levels after soaring turnover early last year during the dot-com craze. In particular, he expects companies to accelerate spending to redesign supply chains and product development with the help of the Net, playing to Kearney's strengths.