The largest contract, worth around USD 3.8 billion, has been awarded to EDS. EDS will be involved in GM’s server and network management, product development, manufacturing, and purchasing. HP has the second-largest contract share, approximately USD 700 million, to provide server management, application and systems integration, and SAP-based architecture. Capgemini and IBM have been awarded shares of USD 500 million, for tasks involving application integration and global sales marketing. Wipro, the only Indian company to be part of the contract, has been awarded a USD 300 million contract to develop GM’s middleware systems. Compuware’s Covisint division will provide GM with a messaging-link service for its suppliers, worth an undisclosed amount.

GM will spend around USD 15 billion over the next five years, although cost-savings over the duration of the contracts will likely result in net-savings for the company. Approximately 50 percent of the contract amount will be awarded to the IT suppliers now, with telecommunications contract awards to be made later in the year. The balance will be awarded gradually over the five-year period of the contract, based on assessed spending on hardware, software, and new deployment of IT systems.

HP and Capgemini will increase their current business with GM, while IBM, Compuware Covisint, and Wipro will continue to be strategic IT partners. These awards mark the beginning of supplier technology transition expected to provide increased speed and flexibility to the company’s global enterprises. The terms of the contract were divided into 40 segments covering computing operations, application support, automotive product development, global manufacturing and supply chain management, SAP enterprise architecture, and GMAC financial services. GM will coordinate with IT suppliers to standardize its work process, including the operation of all IT services from systems delivery to supplier interactions.


(Comment from O2P: WOW!! Can you imagine a company outsourcing servces worth $15 Billion! Amazing. I expect that the outsourcers will use their global networks to perform some of the work....but alas, none of the companies involved have operations in the Philippines, so we probably won't get any of the benefit of this gigantic deal. By the way, GM has been on a downward spiral for years, losing large sums in the face of Japanese and other competition. So in this case, I would guess that the pure economics of outsourcing were the deciding factor. So my question is - in boldface and caps: WHY DON'T CAPGEMINI, EDS,COMPUWARE, COVISINT, WIPRO HAVE OPERATIONS IN THE PHILIPPINES?? Sure, IBM and HP are here, but I doubt that they have the size or scalability to participate...or do they, or would they even be considered? amen).