EDS Gets Biggest Cut of GM Pie

By Stan Gibson  |  Posted 2006-02-08 Print this article Print

General Motors awards $7.5 billion in technology contracts over the next five years.

General Motors, in the week of Jan. 30, awarded $7.5 billion in technology contracts over the next five years. Not included in the deal were hardware, software and application development expenses. That work will be parceled out as the need arises. In addition, telecommunications contracts are being bid separately and will be announced later this year.

Heres a look at GMs technology team:

• Covisint, a subsidiary of Compuware, will use its messaging technology to handle business-to-business supply chain collaboration for more than 18,000 suppliers.

• Capgemini said it won all the contracts on which it bid. The contracts, worth $500 million, encompass application integration management; enterprisewide applications for global purchasing and supply chain operations; global sales, service and marketing; and business services.

• Electronic Data Systems retains the bulk of GMs technology budget in a deal valued at about $3.8 billion over five years. EDS will be responsible for global product development, global manufacturing, global purchasing and supply chain operations, global business services, mainframe operations, server operations, GM OnLine (desktops), LANs, GMAC, and OnStar.

• Hewlett-Packard will handle eight contracts, worth $700 million, including those for global product development, manufacturing, GMAC and SAP deployment.

• IBM said it won $500 million worth of business and will support applications for GMs service and parts operations and manufacturing quality assurance systems. IBM will also handle integration management and operations support for GMs worldwide IT computing infrastructure.

• Wipro, the outsourcing company based in Bangalore, India, gained about $275 million worth of business over the next five years, some of which will be done as a prime contractor to GM and the rest as an EDS subcontractor.

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Stan Gibson is Executive Editor of eWEEK. In addition to taking part in Ziff Davis eSeminars and taking charge of special editorial projects, his columns and editorials appear regularly in both the print and online editions of eWEEK. He is chairman of eWEEK's Editorial Board, which received the 1999 Jesse H. Neal Award of the American Business Press. In ten years at eWEEK, Gibson has served eWEEK (formerly PC Week) as Executive Editor/eBiz Strategies, Deputy News Editor, Networking Editor, Assignment Editor and Department Editor. His Webcast program, 'Take Down,' appeared on Zcast.tv. He has appeared on many radio and television programs including TechTV, CNBC, PBS, WBZ-Boston, WEVD New York and New England Cable News. Gibson has appeared as keynoter at many conferences, including CAMP Expo, Society for Information Management, and the Technology Managers Forum. A 19-year veteran covering information technology, he was previously News Editor at Communications Week and was Software Editor and Systems Editor at Computerworld.

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