GM Marches On With In-Sourcing
As part of an ongoing effort to bring 90 percent of its software development and data management jobs in house, General Motors (NYSE:GM) has announced that it will be hiring some 3,000 workers from Hewlett-Packard (NYSE:HPQ). The employees already work on GM projects, and will phase in over the course of six months.
GM currently does only about 10 percent of its information technology work in house, outsourcing the rest. The company believes that by bringing talent inside, it can foster a culture that will help GM radically simplify and speed up its current tech operations. The company wants to consolidate its 23 global data centers into just two, based in Michigan.
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“We’re currently seeking the next generation of game-changers to help us usher in a new age of automotive innovation at GM,” said GM chief information officer Randy Mott. “These agreements with HP will enable us to accelerate the progress of our IT transformation by delivering increased innovation and speed of delivery to our GM business partners and reduce the cost of ongoing IT operations.”
GM Chairman and CEO Dan Akerson has said that the company has a “1970s IT overlay in a company that’s operating in the 21st century.”
In July, HP renewed $2 billion worth of multi-year contracts with GM.
GM’s push to in-source IT talent won’t be without some road bumps, though. Michigan is facing a shortage of computer software engineers. According to USA Today, Garth Motschenbacher, director of employer engagement in career services at Michigan State University, says “it’s going to be a steep uphill drive” for GM. Warren, Michigan, where the company wants to open a tech center for 1,500 employees, is one of the most heavily recruited areas in the state. GM will have to fight against giants like Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), and General Electric (NYSE:GE) for star talent.