Looks like Perot Systems is taking a beating. As reported all over, the service provider has lost the vestiges of the 10-year, $700 million contract it had with Harvard Pilgrim Health Care to implement and manage its central administrative software platform. That deal was signed in 1999, six years ago. (Harvard Pilgrim will pay an early termination fee in 2006.) That bit of business represents 5.5% of Perot's annual revenues.
This has hit at the same time Perot is facing the impact of losing its biggest customer, the Union Bank of Switzerland, whose contract experts in January 2007. The UBS deal represented 16% of total sales during the fourth quarter.
As Computer Business Review reports, that puts the provider in the position of looking for replacement work for "more than a fifth of its quarterly revenue."