Delphi Auto Signs Deals with EDS - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Delphi Auto Signs Deals with EDS

Delphi Automotive Systems Corp., the $28.5 billion company spun off last month from General Motors Corp., announced today it has awarded two five-year services contracts to EDS. Before the May 28 spin-off of Delphi from GM, EDS completed the separation of Delphi systems from GM systems in the United States and Brazil in 108 days.

Because of the spin-off, Delphi needs to create its own relationship with EDS, which has a master agreement to provide outsourcing services to all of GM. The new Delphi- EDS master services agreement contains broad terms and conditions for the relationship between the companies, while a U.S. agreement identifies services in the United States that EDS will provide and those which Delphi can put out for competitive bid. Other specific agreements will be reached soon for additional regions in the world, says Delphi CIO Peter Janak.

While the master and U.S. agreements with EDS were not competitively bid, Delphi used benchmarking comparisons to make sure EDS service levels and prices were competitive.

In April, Delphi awarded a three-year, $25 million contract to Hewlett-Packard for SAP management and support. And a global wide-area-network contract is in competition, to be awarded at the end of July, Janak says.

The values of the two contracts announced today, and effective July 1, were not disclosed. However, "from a financial viewpoint, these are very good for Delphi," says Janak, representing "big dollar numbers." Services that EDS will provide include engineering and manufacturing IT support to Delphi facilities in 36 countries, support and connectivity for Delphi's use of ANX, the automotive industry's extranet, ongoing support for Delphi's legacy systems, and some new development, although new development also can be competitively bid on a project-by-project basis.

The EDS master services agreement with GM was for 10 years. Janak's preference for shorter-term contracts--three years with HP and five with EDS--reflects his desire for flexibility to accommodate change and some continual pressure on suppliers. While he considers outsourcers to be partners, he also wants his suppliers "to worry on a daily basis about their future with us, just as we do with our customers."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2020 State of DevOps Report
2020 State of DevOps Report
Download this report today to learn more about the key tools and technologies being utilized, and how organizations deal with the cultural and process changes that DevOps brings. The report also examines the barriers organizations face, as well as the rewards from DevOps including faster application delivery, higher quality products, and quicker recovery from errors in production.
Slideshows
10 Top Cloud Computing Startups
Cynthia Harvey, Freelance Journalist, InformationWeek,  8/3/2020
Commentary
Adding Fuel to the MSP vs. In-house IT Debate
Andrew Froehlich, President & Lead Network Architect, West Gate Networks,  8/6/2020
Commentary
How Enterprises Can Adopt Video Game Cloud Strategy
Joao-Pierre S. Ruth, Senior Writer,  7/28/2020
Register for InformationWeek Newsletters
Video
Current Issue
Enterprise Automation: Do More with Less
In this IT Trend Report, we highlight the benefits of automation and the various tools as enterprises navigate turbulent times, try to do more with less, keep their operations running, and stay on track with digital modernizations.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll