I listened to Aon's 4Q12 investor call on Friday and believe that I understand why the company's recent earnings report was not well received by investors. First, the insurance brokerage firm stated that its benefits unit, Aon/Hewitt, would only achieve mid-single-digit earnings growth this year, which was below Wall Street expectations. Second, the risk management division had a modest decline in its EBITDA margin in the quarter. And lastly, management refused to provide any quantifiable metrics for its sizable technology investments in such projects as GRIP, healthcare exchanges, Aon brokerage , etc. These issues caused investors to come away from management's commentary disappointed in the profit trajectory of the company for the current year.
And remember that technology is NOT a part of their business but just an expense which is why CSC and India support all the servers and users. Thinking that technology supported on that platform will actually WORK is stunningly stupid. Those neat and nifty web sites may look well and good, but there is a ton of background support that nobody ever talks about.
You are not just retired, you are out of touch. Technology is indeed part of the business. Development and support is provided by several parties including hundreds of colleagues as well as third parties like CSC. But the portion of technology capacity and services that CSC provides has indeed been reduced over the last few years. So while I am not in any way a fan of CSC, your monomaniacal slams of CSC continue to be less timely or relevant as time, and reason, moves on.