General Motors today announced the winners of its five-year service contract. EDS, until now GM’s only outsourcing partner will have to part with some of the business it provides to the car maker today.
According to GM CIO Ralph Szygenda, GM awarded “approximately” 50% of the contract package, valued at $15 billion, today. EDS received business worth about $3.8 billion, Hewlett-Packard can count on $700 million, IBM and Capgemini $500 million each and Compuware Covisint and Wipro around $300 million. While the figures do not quite add up to Szygenda’s claim, EDS appears to be the winner of the bidding race, which lasted for about 18 months.
As EDS provides and manages most of GM’s infrastructure today, the car maker had to find a compromise between the introduction of new thinking, saving cost and avoiding disruption of existing workflow.
GM plans to award further contracts as soon as the firm’s current telecommunications contracts will have expired. The remaining balance “will be awarded throughout the five years as a part of the natural business process used by information systems and services,” GM said.