GM renews outsourcing contracts

General Motors this week said it has renewed two contracts with consulting and technology outsourcing provider Capgemini, reports Managing Automation.

Capgemini manages and supports the automaker's key dealer and sales and marketing systems.

News of the deal follows GM's five-year, $2 billion contract renewal with HP, which will continue to provide the auto maker with a wide range of IT services, including support for manufacturing software. Capgemini estimated the combined value of the two five-year agreements at $250 million.

In his first visit to India as the British prime minister, conservative leader David Cameron allayed fears of any curbs on the IT outsourcing by the country's government departments, even as he asked Indian companies to create more jobs in the UK, states The Times of India.

Cameron started his India trip by addressing executives and government officials at Infosys Technologies' sprawling Bangalore campus last week.

“You will find Britain one of the most open and progressive countries in terms of being open to outsourcing,” says Cameron when asked about whether his government would curb offshoring contracts with Indian IT companies such as Tata Consultancy Services.

Advisory firm TPI has released data showing the commercial outsourcing market in Europe, the Middle East and Africa (EMEA) has yet to exhibit signs of recovery, says Consultant News.

This is following the sharp downturn in demand in mid-2008, with lacklustre outsourcing activity in the UK and Germany in the first half of 2010 causing an overall decline from the same period last year.

The 2Q EMEA TPI Index showed that total contract value (TCV) of EUR13.3 billion was awarded in the region in the first six months of the year, down 6% from the first half of 2009. TCV fell by more than 50% in both the UK and Germany.