EDS Wins The Majority of The GM IT Contract
EDS announced yesterday that it was awarded the majority of the five-year multibillion-dollar General Motors system integration services awards. This is worth $3.8 billion over five years and – when added to the existing GM business that EDS has that was not rebid – results in annualized revenues of $1.2 billion to $1.4 billion of revenue for EDS.
This is a huge deal for EDS. In early 2004 when EDS acquired the Feld Group (my uncle Charlie Feld’s company – I was an investor), the GM contract renewal was one of the major concerns that investment analysts had about the future success of EDS, as there was a substantial amount of business being rebid and there were concerns that most of it would go to companies other than EDS. While EDS’s share of GM’s outsourcing revenue will be reduced, the going forward revenue is higher then most people expected. As a result, a major long term concern about EDS has been put to rest.
Congrats to all my friends at EDS.