EDS Gets Biggest Cut of GM Pie

 
 
By Stan Gibson  |  Posted 2006-02-08
 
 
 

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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