DETROIT With EDS master IT contract set to expire at General Motors in two years, EDS announced Wednesday it has signed a multi-year IT agreement with DaimlerChrysler Corporation. Financial terms were not disclosed, but EDS said the deal is one of the largest it has signed this year.
Under the agreement, EDS will manage the migration of servers and services to a consolidated managed services environment for DaimlerChrysler’s Michigan facilities.
“This partnership allows DaimlerChrysler to utilize EDS’ resources and innovation to manage complexity and continue the pursuit of quality and operational efficiencies,” said Sue Unger, Sr. Vice President/CIO, DaimlerChrysler AG.
DaimlerChrysler will use EDS to support its business strategy and to standardize processes and procedures. EDS will oversee management of DaimlerChrysler’s hardware operations and server-based software.
The Plano, Texas-based company, with major operations in Michigan, has had problems signing new multibillion-dollar contracts as it struggles with its money-losing $6 billion Navy contract and a possible downgrade by ratings agency Moody’s Investors Service to junk status, Reuters reported.
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An investment grade rating is important for outsourcing companies because big contracts require huge upfront spending to lay out the groundwork. EDS said it has enough liquidity to win and carry out new assignments. New contract signings jumped by 33 percent to $4 billion in the first quarter.
