GM Awards IT Contracts Totaling $15 Billion

General Motors Corp., said Feb. 1 it will award a series of new information technology contracts worth $15 billion 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.

"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 automaker says it expects to award new telecommunication systems contracts later this year.

Copyright Agence France-Presse, 2006

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