Capgemini Orbits GM’s IT Constellation for EIS

Former GM CIO Ralph Szygenda created a beast of an outsourcing deal at the beginning of the millennium.  He would have a small constellation of very large IT providers – including GM perennial EDS (now owned by HP) – bid for all of the IT service needs.  If you wanted to play in the GM game you had to go into orbit around one of these large gaseous planets which would then orbit GM and Ralph’s team.  (In retrospect Ralph seems to be a bit Copernican but the simplicity was challenged by many layers of GM beuracracy.)

To give a sense of the humor of the IT executive team, all existing outsourcing contracts would end on June 6, 2006.  That would be 6-6-6 for you Judeo-Christian numerologists.

Apparently things have worked well enough for Capgemini, and today it was announced a contract extension in the EIS space to the tune of $100M.  This after contracts totaling $250M in value were secured by Capgemini from GM in July.

Read Chris Chiappinelli’s article in Managing Automation (and follow Chris on Twitter: ChrisChip).

GM Contracts With Capgemini for Enterprise Integration Services.

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1 Comment

Filed under Audit and Oversight, Information Technology, Operations, Procurement, Technology

One response to “Capgemini Orbits GM’s IT Constellation for EIS

  1. Joe Campbell

    I am doubting the “third wave” fully returned the value expected as while the idea of not placing all your eggs in one basket is valid as you would with a single sourced provider. One however therecare trades offs in synergies both cost wise as well as service wise a single sourced deal delivers. This just shows there truly isn’t such a thing as a free lunch as there is give and take to choices.

    Like

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