IBM Takes Home $500 Million, While HP Gets $700 Million

Last week GM announced it was awarding $15 billion worth of IT contracts after a two-year review. IBM will capture part of this spend with its contract estimated to be worth up to $500 million over the next five years. Hewlett-Packard secures $700 million, also over five years.

Under the new contract, IBM will support the applications of GM's service and parts operations as well as its manufacturing quality assurance systems. In addition, IBM will play a role in the integration management and operations support of GM's worldwide IT computing infrastructure.

"The new initiatives we'll participate in at General Motors expand on our long-standing relationship," Frank Roney, IBM's Managing Director, General Motors Account.

IBM will help GM increase its ability to leverage information technology and support integration management of computing infrastructure driving the implementation of GM's Standardized Work infrastructure processes. IBM will also continue to work with GM's Information Systems and Services organization to define and develop new business applications.

Hewlett Packard's will work with GM's Information Systems and Services organization to provide server management, application maintenance and systems integration. HP Services will manage a majority of GM's global engineering workstations, enterprise resource planning hosting, global product development server environments and many of the servers in GM's Asia Pacific region.

"HP has a strong track record of collaborating with GM to reduce costs, decrease production cycles and improve quality," said Ann Livermore, executive vice president, Technology Solutions Group, HP. "We selectively bid on areas where we have strong competencies. We are very pleased to be selected to deliver IT operations and application services to GM's Information Systems and Services organization that will support the core areas of their business -- product development, manufacturing, quality and finance."

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