GM Outsources IT for $15B

“Our primary goals are to avoid any business disruptions and ensure our efforts
fully support the company’s global operations,”

said GM CIO Ralph Szygenda.

General Motors signed five-year technology-outsourcing deals Thursday worth up to $15 billion with a group of systems integrators including Electronic Data Systems, Hewlett-Packard, IBM, Capgemini, Wipro, and Compuware Covisint.

“It’s a pretty big win for EDS,

” said Lorrie Scardino, a research vice president with Gartner.

They recorded that they won 70 percent of the work that they competed on. It’s a
nice healthy percentage. They were awarded more contract value than the other
five players.”

Shares of GM fell $0.79 to $23.71 in recent trading, while shares of IBM dropped $0.94 to $81.00, HP shares slipped $0.36 to $30.87, EDS shares rose $0.14 to $25.86, and Wipro climbed $0.21 to $14.87.

IBM, Wipro, and Compuware Covisint will continue to be strategic IT partners for GM.
Wipro said it is getting a $300-million five-year contract from GM.

Of critical importance is the focus we have had on driving innovation and
supporting future globalization and digitization of the company

said GM CIO Ralph Szygenda.


HP and Capgemini will increase their current business with GM. HP is receiving $700 million to help provide server management, application maintenance, and systems integration to GM. It will work with GM’s product development, manufacturing, GMAC customer and dealer information systems, and global SAP management support.
Capgemini is receiving a five-year contract worth more than $500 million to integrate applications in the areas of company strategy, quality control, purchasing, supply chain management, sales support, and marketing.