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 ...
"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."
Unless GM outsources the "management" of their IT, they're not going to realize any cost savings. Indeed, they will incurr a sizable cost just coordinating 5 different vendors' work.
Yes Sir, I apologize for that misprint. This is a REUTERS article via Fonews.com.
Sorry!
-SoL1
yes, but they get contracts, and send the jobs offshore. and I already think we are past the tipping point of being able to rebuild the US IT/EE sector, people are fleeing the field, and parents are not sending their own kinds into those college programs because they don't see career opportunities in competing with workers in India and China.
A friend worked on a telecom project for DOW. EDS was one of the contractors.
He was doing an assessment of current network equipment. EDS sent him a COBOL programmer to help. The guy didn't know the difference between a router, switch, hub, etc... The first week he stood on a desk chair to reach some equipment. DOW promptly removed him from the premises.
I don't think the project was ever completed. My buddy left for another company.
EDS sucks.
My Fords are made in Michigan and/or in Canada. We get to work on time and take long vacations in them.
My lug nuts require more torque than your Honda makes.
Thank you very much.
Aw, I'm jst giving you a hard time. :P
I drive a 99 Taurus, myself.
NMCI is a mess. Read about how EDS bids contracts here: "Navy EDS paring NMCI service-level agreement".
If GM thinks this will solve their problems and/or reduce them, they are wrong.
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