HP's $600m GM deal jeopardised

The decision by General Motors to bring much of its IT work in-house may prove to be a threat to a $600m per year IT service contract the US automaker awarded to HP, Reuters has reported, citing two sources with knowledge of the matter. It is unclear how much of the HP agreement would be affected, but the GM contract is one of the bigger contracts at the IT company, one of the sources said, adding that the loss of a significant amount of that business would be a "big deal." Last week, GM said it plans to handle most of its own IT needs internally, completing the transition within three to five years by hiring thousands of software developers and replacing its outsourced work.

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