General Motors Company, which is commonly known as GM, is an American multinational corporation headquartered in Det_roit, Michigan. General Motors was started byWilliam C.Durant in 1903 and by 1920 it raised to a company with more than Thirty acquiring. In October 1984 GM made a strategic move by acquiring EDS for approximately 2.5 billion dollars. By this deal GM should buy all its requirement for computers, communication needs and information processing from EDS. The partnership was expected EDS to integrate complex integrated systems of GM in to a common system. EDS and GM benetted by the partnership where GM had over 7000 information systems and EDS had more than 10,000 employees. In 1995 GM called curtains to its partnership with EDS, 500 million dollars of one time payment and conversion ofGM class E stock to EDS stock. Corporation had obtained U.S. Internal Revenue ServicesllRS) clearing to have a tax-free split. The decision was made in best interests of both the stock holders, the main reason was to develop inhouse IT expertise. Overall EDS effort to integrate GM systems was not implemented as expected. EDS was not able to handle the diverse landscape integration and on top had to fragment all of IT. Under terms of new contract, GM committed to buy 85% of informative services through 2000 and at least 75% for six years. Other