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DETROIT, Feb 2: US auto giant General Motors Corp. said on Thursday it would award a series of information technology contracts for systems integration services, valued at up to $15 billion.
The IT contracts will be awarded to Electronic Data Systems Corp., Hewlett-Packard Co. (HP), French company Capgemini, International Business Machines Corp. (IBM), Compuware Covisint and Wipro over the next five years.
The contracts were driven by the end of a 10-year split-off agreement with EDS that expires in June and a two-year review of IT spending.
The contracts are aimed at improving GM’s global computing operations, including systems integration, manufacturing and supply chain management and automotive product development.
The world’s largest auto-maker said EDS would continue to carry the majority of the automaker’s IT integration business, although the total value would be less than prior contracts.
HP and Capgemini, meanwhile, would gain the largest share of new business.
EDS said it had received $3.8 billion worth of business from GM, or 70 per cent of its total bid proposal, covering what it dubbed “mission-critical” systems ranging from global product development and manufacturing to mainframe operations.
HP said it was awarded $700 million in business, including management of GM’s engineering workstations and maintenance of product development.
Capgemini said it had pursued six GM contracts and was awarded all six, including the management of enterprise-wide application management. The statement on the French company’s website did not provide financial details.
IBM’s contract totals $500 million, covering support of applications at GM’s Service Parts operations unit, manufacturing systems, as well as supplier compliance and security management.
Wipro Technologies said its contract was valued at more than $300 million.
“Over the next five months, we will focus our efforts on assuring a smooth transition,” said Ralph Szygenda, GM’s group vice president and chief information officer, said of the IT deals.—AFP
