As part of a five-year, $15 billion information technology services program, General Motors Corp. said it will award contracts to a group of seven suppliers, including HP and IBM.
The awards are being made as GM concludes what it calls a 10-year "split-off agreement" with EDS that expires in June of this year. EDS had been a GM unit previously.
EDS will continue to get the lion's share of GM's IT services business, but more business will now go to HP and services firm Capgemini, GM said. HP estimates that its share of the five-year spend will amount to about $700 million.
HP said its contracts span global product development, manufacturing and quality, GMAC customer and dealer information systems, and global SAP enterprise architecture management support.
Other companies awarded contracts include Compuware's Covisint subsidiary and Wipro.
"This is a significant milestone for General Motors and its Information Systems & Services Group," said Ralph Szygenda, group vice president and chief information officer at GM, in a statement. "Of critical importance is the focus we have had on driving innovation and supporting future globalization and digitization of the company."
This article originally appeared in the March 2006 issue of Managing Automation magazine.