General Motors has finally awarded its third generation IT outsourcing contract to multiple outsourcing firms, ending months of speculation. The major part of the five year, $15 billion contract has gone to incumbent vendor EDS, whose old term would expire in June. The new vendors that have bagged the deal are IBM, Capgemini, Wipro, and Compuware Covisint, a unit of Compuware.
One of the biggest outsourcing deals of all times, this deal is marked by GM CIO Ralph Szygenda’s new model of the contract that makes the vendors to work with each other.
Wipro’s success means another major contract going to an Indian vendor, after the ABN Amro deal last year.