General Motors sticks with HP services

General Motors (GM) has renewed a $2bn deal with HP Enterprise Services for IT services.

General Motors (GM) has renewed a $2bn deal with HP Enterprise Services for IT services.

The deal, which has been signed a year before the end of the current contract, expands on a long relationship stretching back to when EDS spun out of General Motors itself in the 1990's. EDS, which HP acquired in 2008, was previously the IT department of General motors.

HP will provide applications and infrastructure management services in support for tens of thousands of desktop PCs and mobile devices as well as GM's manufacturing and supply chain operations.

It will also supply applications development and management services, integrate a converged infrastructure, provide managed mainframe services for GM's major business systems, including financial transactions and supply chain. HP's global service desk and site support services will be provided in over 50 countries and there will be remote network management for data, network security and videoconferencing services.

Robert Morgan, director at consultancy Burnt-Oak Partners said the re-signing of this deal is extremely important for HP because of the history and current context. "It is an affirmation that things have improved since Mark Hurd took over. This is the most significant deal since HP acquired EDS."

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