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The More Things Change...

the more they stay the same. Sure, it is an old adage but it also true. Consider recent talk of increased consolidation in the IT services industry. Companies like EDS are making moves to buy other firms, but this is hardly anything new. Just weeks ago, news surfaced of merger talks between Lucent and Alcatel - two tech vendors with services organizations. This follows the big news of March that the new AT&T, itself the result of the blending SBC and AT&T, plans to buy BellSouth.For ages, technology companies, including many services firms have looked to strengthen their market position by joining forces with other businesses. Remember when little Worldcom swallowed giant MCI a few years back?

Of course, there is at least one important differences in what is happening now versus the bygone days. Companies are increasingly going international with their acquisition to expand their presence, while controlling costs. EDS is making a bid to buy Bangalore-based services firm Mphasis. Alcatel and Lucent are reaching across the pond to join forces. It is too soon to tell what the result of these pending mergers will be, but it is certainly interesting to watch.