Posted on 02/03/2006 9:34:40 AM PST by SonofLiberty1
GM to Outsource $15B in IT Work Thursday, February 02, 2006
DETROIT — General Motors Corp. (GM) said on Thursday it would outsource up to $15 billion of information technology work as it tries to cut costs and restructure operations.
Five-year contracts were given to Electronic Data Systems Corp. (EDS), Hewlett-Packard Co. (HP), International Business Machines Corp. (IBM), France's Cap Gemini, the Compuware Covisint unit of Compuware Corp., and India's Wipro Ltd.
About half of the $15 billion in five-year contracts were awarded on Thursday, GM said.
The world's largest automaker said the initiative was driven by the end of a deal with EDS that expired in June, 10 years after EDS was spun off from the No. 1 automaker.
GM said EDS would have less business with its former parent. Plano, Texas-based EDS said it had won about $3.8 billion in contracts over five years.
EDS said it expected its total revenue from GM, including other business that had not been up for review, to be near $1.2 billion to $1.4 billion on an annualized basis.
(Excerpt) Read more at foxnews.com ...
Made in the U.S.A........Buy HONDA.
and EDS et al - will send that work right to India.
Never!
My wife and I did, great car.
If the quality of the work they get out of India is on a par with the digital excrement my firm has gotten out of those folks, this should be the final nail in GM's coffin.
not for long. they are even moving work to south america now.
My experience with EDS tells me they will overcharge and never complete any of the work.
Some of us here prefer the Japanese cars that are really made in the US like Toyota and Honda over the NAFTA cars like GM and Ford that are really made in Mexico and Canada.
Yes, buy American - thats if you can speak Hindi.
Your Mexican car sucks. :)
You know it was bound to happen...It almost seems as though they lost money just so they could move overseas..
I own two Chevy's (both imported) and one 84 Buick nearly all American muscle.
If Microsoft ever designed a car.....(complete the sentence..)
GM has outsourced it's IT work to EDS and others for as long as I can remember.
This is not a new thing for GM. It's the way they have been doing business for decades.
It should also be noted that this is a Reuters article via Fox News, rather than something writen by reporters at Fox News.
"Depends, we do some outsourcing with IBM and all the guys on our account are based stateside.."
Many of IBM's outsourcing partners require that the data and employees stay in the states. Recently one of IBM's accounts went to India with all their sensitive financial in tow. IBM is feverishly outsourcing their internal accounts to India, Brazil, China, South Africa and Argentina to name a few. IBM's upper management envision a day when they can sit back and rake in the money while paying a pittance for service. Unfortunately there won't be many Americans who can afford their services then.
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