General Motors’s plan to drop $15 billion (roughly
the market capitalization of the company) on information technology finally resulted in some contracts this week. The
largest-ever IT outsourcing buy was split into several 5-year contracts, which don’t quite add up to the
previously-announced value due to a bit of much-needed belt tightening.
EDS managed to win $3.8B in contracts,
which represents a significant drop from its current share. HP, Compuware, Wipro, and Capgemini also came away winners,
while IBM left empty-handed. It sounds as if there’s more work yet to be awarded, with EDS talking about winning
additional business, and something in the neighborhood of $2-3 billion still rumored to be set aside for start-ups.
That’s not exactly table scraps. Now, what remains to be seen is how GM takes advantage of all this shiny
new technology.