AT&T Scores GM, Delphi Outsourcing Deals - 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

AT&T Scores GM, Delphi Outsourcing Deals

AT&T today scored major global IP network design, building, and management contracts with General Motors Corp. and Delphi Automotive Systems totaling more than $500 million during the next five years.

GM signed a $350 million contract with AT&T Solutions, the company's professional-services subsidiary, that includes replacing within the next year the auto manufacturer's existing networks with a Cisco Systems router-based IP backbone network. AT&T Solutions plans to work closely with EDS, GM's current primary network and computer services provider, to ensure a smooth transition to the IP network, which will provide connectivity among GM's 1,100 locations in more than 40 countries.

While EDS did not directly bid on the IP network contract, the services firm will continue to provide 75% of GM's IT services into 2006, says Bob Chaffin, director of finance and contract management with GM's Information Systems and Services group. GM says it cannot quantify how much money the deal with AT&T will save the company over time, but Chaffin did point out that GM's relationship with AT&T is part of an overall GM initiative to reduce its IT costs by $100 million.

GM's goal is to have a single IP network that connects the company globally within the next two years, says Rick Roscitt, president and CEO of AT&T Solutions. Until that time, AT&T will maintain separate voice and data networks on a single backbone for GM.

AT&T Solutions' $160 million deal with Delphi calls for the services firm to likewise design, build, and operate a global IP network, allowing Delphi to link its global locations with more than 2,800 suppliers and customers in a unified virtual private network. Part of GM before establishing itself as an independent, public company in May, Delphi operates 168 wholly owned manufacturing sites, 38 joint ventures, 51 customer centers and sales offices, and 27 technical centers on six continents.

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
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Commentary
If DevOps Is So Awesome, Why Is Your Initiative Failing?
Guest Commentary, Guest Commentary,  12/2/2019
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
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