The long-awaited General Motors (GM) IT procurement dominated the recent major contract awards in the computing-services sector.
Of the ten largest deals tracked by Datamonitor, GM awarded four.
Hundreds of services vendors had been pitching for a share of the automaker’s overhaul of its IT-supplier relationships, with many industry watchers expecting EDS — GM’s incumbent supplier and former subsidiary — to be the big loser.
However, the Texan outsourcing giant would have been pleased to secure the largest single share of all vendors on the new procurement, as it captured $3.8 billion of business over a five-year period.
EDS said that it won 70% of the contract awards for which it pitched, including projects to manage and integrate GM’s servers, desktops and LANs and applications covering product development, manufacturing and purchasing. EDS said that including some other GM business that was not part of the recompete, it should make between $1.2–$1.4 billion annually from the GM account.
The second largest individual share goes to HP, which secured more than $700 million of awards to provide server management, applications maintenance and systems integration services for a number of application areas including GM’s SAP architecture and its dealer-information systems. Capgemini and IBM Global Services each captured $500 million of business for the next five years.
GM was not the only automotive giant that updated its IT-services sourcing strategy last month. DaimlerChrysler extended a desktop and network management deal with T-Systems — the services operation of Deutsche Telekom — in a move that highlighted how under pressure car manufacturers are looking to focus on their core operations, and outsource their IT infrastructure where possible.
There was some welcome news for Dutch IT infrastructure services firm Getronics, which won its largest deal to date in the financial-services sector, with U.K. bank, Barclays.
Getronics won a five-year deal to provide desktop and application management support to over 30,000 users, taking over the deal from incumbent supplier EDS. However, it has been an otherwise tough few works for Getronics, which has seen its shares fall on the back of problems at its Italian subsidiary.
