Shift at Peerless For New Focus On Outsourcing

Peerless Group Inc. promoted two corporate veterans in moves reflecting stronger emphasis on its outsourcing services.

The Richardson, Tex., software company's board named Gary Austin vice chairman in charge of new business, a newly created post. He had been president.

Steven Tomson, formerly an executive vice president, is the new president and remains chief operating officer.

Peerless' products are installed at more than 300 banks and credit unions.

"Between now and 2000 we see major growth" in outsourcing, Mr. Austin said. "This is somewhat speculative, but I would not be surprised to see us processing in excess of 200 or 250 banks."

He has spent 12 years with Peerless, which in a previous incarnation was a unit of Electronic Data Systems Corp.

Peerless' management bought it in 1989. A contractual stipulation prevented the offshoot from offering outsourcing services for five years.

It started the outsourcing venture last September and serves five banks in the Dallas-Fort Worth area.

Mr. Austin said the time is ripe to enter the processing business. One advantage, he said, is that it need not contend with year-2000 issues.

"This is one time in history when being the biggest and having the largest infrastructure is not the best position to be in," he observed.