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GM awards IT contracts totalling 15 billion dollars
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  • DETROIT, Michigan, Feb 2 (AFP) Feb 02, 2006
    Auto giant General Motors Corp., said Thursday it will award a series of new information technology contracts worth 15 billion dollars following a two year review.

    The contracts will be awarded to Electronic Data Systems Corp. (EDS), Hewlett-Packard Co., Capgemini, International Business Machines Corp., Compuware Covisint and Wipro as a 10-year agreement with EDS expires in June.

    The contracts seek to improve GM's global computing operations, including systems integration, manufacturing and supply chain management and automotive product development.

    The announcement comes one week after the world's largest auto-maker unveiled an 8.6 billion dollar loss for 2005 and said it had been "one of the most difficult years" in its history.

    GM was pounded over a sharp drop in demand for its highly profitable sports utility vehicles and massive restructing charges.

    "Over the next five months, we will focus our efforts on assuring a smooth transition," Ralph Szygenda, GM's group vice president and chief information officer, said of the IT deals.

    "Our primary goals are to avoid any business disruption and ensure our efforts fully support the company's global operations."

    GM said EDS will continue to oversee the majority of its IT integration business, although on a reduced basis. HP and Capgemini will gain the largest share of new business.

    The auto-maker says it expects to award new telecommunication systems contracts later this year.




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