GM in £8.4bn outsourcing programme

General Motors last week awarded contracts to EDS, Capgemini, Hewlett-Packard, IBM, Compuware, Covisint and Wipro as part of an £8.4bn outsourcing programme.

General Motors last week awarded contracts to EDS, Capgemini, Hewlett-Packard, IBM, Compuware, Covisint and Wipro as part of an £8.4bn outsourcing programme.

The deal, one of the largest to date, highlights the growing trend towards multisourcing.

EDS, which spun out of GM 10 years ago, remains its biggest supplier. Under the new arrangement, EDS has gained business worth up to £788m a year from the motor manufacturer.

HP said it would get more than £390m in new business over five years. Capgemini and IBM both signed contracts worth £280m, and Indian services company Wipro got £170m in business over five years.

GM said it planned to distribute the remainder of the £8.4bn in outsourcing deals over the next five years, including a major telecoms contract later this year.

The company said that as part of the bidding process it had split the work into 40 segments.

  • Telecoms company Vodafone is planning a major IT outsourcing contract that it hopes will save it hundreds of millions of pounds a year.

 

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