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Date: Fri, 21 Jan 2000 05:02:00 -0800 (PST)
From: jenny.rub@enron.com
To: stanley.horton@enron.com, mike.mcconnell@enron.com
Subject: 
Cc: philippe.bibi@enron.com, rod.hayslett@enron.com, robert.jones@enron.com
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Stan/Mike,  Per our meeting on Monday regarding EDS' CEO, Dick Brown, talki=
ng=20
to Ken Lay or Joe Sutton, below are the bullet points to reflect our=20
position.  Please let me know if you have any comments.   Thanks for your=
=20
support.  Jenny


Message to EDS regarding insourcing

Enron views technology as a strategic focus, and technology staff as=20
strategic resources.

We want to incent these strategic resources to minimize the risk of them=20
leaving the organization and Enron=01,s compensation plans allow us to miti=
gate=20
that risk (Enron has 5% attrition, technology industry 20%).  We also belie=
ve=20
that many of these people want to be part of the Enron organization.

This doesn=01,t mean we don=01,t want to do business with EDS, but we do wa=
nt to=20
change the way we do business with EDS, which will position EDS to sell=20
services that truly are =01&value add=018 and not time and material.

EDS will continue to have a role at Enron:  GPG infrastructure, Azurix,=20
Elektro and possibly EES (work with ATKearney).

And Enron, as a highly visible, =01&well-decorated=018 company*, will conti=
nue to=20
be a positive reference for EDS and it=01,s potential customers, including=
=20
discussions of how we have outsourced and then insourced different technolo=
gy=20
functions and continue to maintain a positive relationship.



* Fortune=01,s most innovative company awards, 24th on Fortune=01,s best 10=
0=20
companies list, etc.