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GM Announces Awards to IT Systems Integrators


February 2006
 Filed under: GENERAL MOTORS CORPORATE Car News | GENERAL MOTORS CORPORATE Headlines

Culminates Two-Year Effort to Globalize IT Systems and Develop Standardized Work Processes

DETROIT - General Motors (NYSE: GM) today announced that it is awarding contracts to a number of key Tier 1 Information Technology (IT) suppliers who will provide systems integration services to its extended global enterprise over the next five years. The awards to EDS, HP, Capgemini, IBM, Compuware Covisint and Wipro are essential elements of GM's future information technology program. This initiative was driven by the ending of a 10-year split-off agreement with EDS that expires in June 2006.
These awards mark the end of the first phase of this re-sourcing initiative and the beginning of the second phase - transitioning the work between suppliers and implementing innovative technologies that will support the company's global enterprise by providing speed and flexibility to the business.

"This is a significant milestone for General Motors and its Information Systems & Services Group," said Ralph Szygenda, Group Vice President and Chief Information Officer, General Motors. "Of critical importance is the focus we have had on driving innovation and supporting future globalization and digitization of the company."

Based upon today's spend rate, GM would spend approximately $15 billion over the next five years. As a result of savings generated through the bid process, the spend rate will be less. Approximately fifty percent (50%) of the spend is being awarded to systems integrators today. GM's telecommunications contracts will expire at the end of 2006, therefore, these contract awards will be made later in the year. The balance will be awarded throughout the five years as a part of the natural business process used by Information Systems and Services as it assesses spending on items such as software and hardware acquisition and new development and deployment of information systems.

Of the five-year contracts being awarded today, EDS will continue to have the most business at GM but somewhat less than today, while HP and Capgemini will increase their existing business. IBM, Compuware Covisint and Wipro will continue to be strategic IT partners to GM. "Over the next five months, we will focus our efforts on assuring a smooth transition," said Szygenda. "Our primary goals are to avoid any business disruption and ensure our efforts fully support the company's global operations."

As part of the overall process to re-source this business, the work was broken down into 40 segments that included everything from computing operations to application support for areas such as automotive product development, manufacturing and supply chain on a global basis as well as GMAC financial services. In addition GM worked with IT suppliers to develop standardized work processes that will provide a common approach and greater efficiency in delivering services to GM. These processes define how to run all IT services from systems delivery to how to manage supplier interactions. Implementation of these processes has already begun.

General Motors Corp. (NYSE: GM), the world's largest automaker, has been the global industry sales leader for 75 years. Founded in 1908, GM today employs about 327,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2005, 9.17 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM operates one of the world's leading finance companies, GMAC Financial Services, which offers automotive, residential and commercial financing and insurance. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

Source: GM

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