EDS wins major share of US$3.8B GM IT contract

Stan Beer
Friday, 03 February 2006 22:48

IT Industry - Deals

Global IT outsourcer EDS has won the majority share of the five-year, multibillion-dollar General Motors (GM) systems integration services awards that were announced today. Highlights are as follows:

·         EDS won approximately 70% of the contracts it pursued, worth US$3.8 billion over five years.

·         With the agreement, plus other business that was not part of the recompete, EDS now expects US$1.2 billion to US$1.4 billion in annualized revenue from GM over the next five years.

Begun in 2004, the GM recompete was reported to be the largest commercial contract bidding process in IT industry history. GM launched the process to create a “third-generation” IT outsourcing model in anticipation of the end of EDS’ 10-year master services agreement (MSA), which expires June 2006.

EDS’ new agreement includes mission-critical systems in Global Product Development, Global Manufacturing, Global Purchasing and Supply Chain, Global Business Services, Mainframe Operations, Server Operations, GM OnLine (desktops), local area networks, GMAC and OnStar.

“EDS continues to be a significant player at GM, and we look forward to continuing our 21-year relationship,” said Mike Jordan, EDS chairman and CEO. “Our innovative approach has been designed to support GM’s vision for a new IT outsourcing model.”

Jeff Kelly, EDS vice president for GM business, said the win validates the company’s leadership role in serving large, global enterprises.

“We’re committed to GM’s multivendor strategy and global standardized processes,” Kelly said. “The work we’ve done here is a key part of our Agile Enterprise foundation and a model for serving other EDS clients around the world, in both applications and infrastructure outsourcing.”

“This is a big win,” Kelly added. “We’re very pleased to be a major part of GM’s third-generation outsourcing model.”

“EDS continues to be a very important strategic IT supplier to GM,” said Ralph Szygenda, GM group vice president and CIO. “We expect that EDS will continue to provide and improve our world-class capabilities while reducing our costs globally.”

EDS has been the primary provider of data processing and other IT services to GM since 1984, when it was acquired by GM. EDS was split off from GM in 1996.