Delphi has struck deals with two of the worlds biggest providers of outsourcing services EDS and HP to shift its information technology operations to them, a part of a strategy that will cut the companys global roster of IT vendors by 90%.
The outsourcing of IT services will enable [Delphi and its subsidiaries] to reduce its IT-supplier base from 100 regional-based suppliers to fewer than 10 direct suppliers, according to company.
Delphi, the biggest supplier to General Motors, has been cutting its work force rapidly in a bid to lower labor costs and pave the way for an exit from bankruptcy by the middle of 2007.
Delphi which employs about 13,000 in Ohio in the Dayton, Warren, Columbus and Sandusky areas has offered buyouts and early-retirement incentives that have persuaded more than two-thirds of its hourly employees to leave the company by the end of the year.