In order to shift its IT operations Delphi has entered into a deal with EDS and HP. This deal is expected to reduce Delphi’s global roster of IT suppliers by around ninety percent. It has entered into the deal for accelerating consolidation and outsourcing of its IT functions.
This deal would help Delphi in reducing its IT supplier base from a hundred regional based suppliers to less than ten direct suppliers. Delphi has been trying to reduce costs in order to recover from bankruptcy by the year 2007. Besides outsourcing it has been offering retirement incentives and buyouts in order to improve the health of the company.
