"These awards are global, not regional or by country, which means each IT supplier has created a single global business management structure to support General Motors which will result in further efficiencies for our company," said Ralph Szygenda, GM's chief information officer. "All IT suppliers will work as one GM team using common IT processes that will result in delivering more innovative technologies to the company. This was a major effort within the re-sourcing of the business."
The new contracts take effect June 6, when the existing 10-year agreement with EDS expires. But transition teams will begin work immediately, Szygenda said.
"Over the next five months, we will focus our efforts on assuring a smooth transition," he said. "Our primary goals are to avoid any business disruption and ensure our efforts fully support the company's global operations."
These GM contracts cover a sweeping landscape of information technology hardware and services. They will help GM in designing and engineering vehicles, running its manufacturing plants, and linking GM facilities across the globe.
GM's spends about $3 billion on its global information technology infrastructure annually. EDS, a computer hardware, services and support firm, has two-thirds of that business.
Szygenda said the new contracts should result in a reduction of GM's annual information technology costs. How much was not immediately clear.
Thursday's announcement follows an arduous two-year bidding process by the nation's largest technology firms. Ultimately, GM will award up to 40 contracts to various vendors over five years.
"This is a significant milestone for General Motors and its Information Systems and Services Group," Szygenda said.
The information systems group will soon turn its focus on contracts for GM's telecommunications needs. The current contracts expire at the end of this year.
You may e-mail Ralph Kisiel at [email protected]