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Delphi in Vendor Consolidation Mode, Strikes Deal With HP and EDS
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Delphi has struck deals with two of the world’s 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 company’s 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.

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