Nucleus Soft bags $15-million GM order

By siliconindia staff writer   |   Friday, 01 October 2004, 19:30 IST
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NEW DELHI: General Motors, which is seeking bidders to provide $3 billion a year of IT services this year, is believed to be bullish on India. Even as the bidding process will start later this year, an IT order has already flown to India. Though company officials are tightlipped about the deal, sources say the order from the world’s largest automaker has been bagged by the Noida-based Nucleus Software. The GM order is to the tune of $15 million (about Rs 70 crore). It is, however, not yet clear whether Nucleus Software will implement the order on its own or will work jointly with other Indian software companies. The technological details about the order could not be known immediately. When contacted, senior executives of Nucleus Software refused to comment on the issue. GM, which is estimated to have an annual IT budget of $3 billion, has been relying on software bigwig EDS for close to two-thirds of its IT requirements. EDS, which was a unit of GM for over a decade till 1996, had a long-term contract which is set to expire middle of next year. And GM is believed to open up a bidding process for a 10-year IT contract by the end of this year. Almost all tech bigwigs are vying to get a share of the mega-contract. EDS, which gets about 10% of its revenues from GM, is quite confident of keeping a significant portion of the business from its largest customer when that contract is up for rebid in 2006. For Nucleus Software, the GM order would be the largest overseas order so far.

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