General Motors to spend $15bn on outsourcing

Filed in archive Outsourcing News on February 4, 2006

General Motors (GM) has entered into a series of multi-vendor agreements with IBM, HP, EDS, Capgemini, Compuware Covisint and Wipro. The 5-year, $15 billion contracts set to begin in June will replace GM's previous 10-year contract with EDS.

Ralph Szygenda, GM's chief information officer, said, "Of critical importance is the focus we have had on driving innovation and supporting future globalization and digitization of the company."

In addition, GM's $500 million agreement with Capgemini will cover support of enterprise-wide application integration management including global purchasing, sales, business services and supply chain organization.

Szygenda added, "Although traditional IT outsourcing represents a significant portion of this new outsourcing endeavor, Capgemini will assist us in key systems architecture management in the future."

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