GM to scale back outsourcing in 1,500 Michigan tech jobs boost

Summary:General Motors will create 1,500 new jobs, boosting the Michigan economy, as the car maker shifts to plow IT work and spending back into the company.

General Motors said today it will create 1,500 new jobs at a newly-created Michigan software development center as the car maker makes good on a previous promise to shift much of its IT work back in-house.

Reuters reports that the car maker will hire software developers, database experts, analysts and a bevy of other IT positions through 2016 in Warren, MI. The Michigan-based technology center will be the second development centers following the announcement of a similar Austin, TX.-based center last month.

gmdatacenter
Design of a new GM datacenter in 2011. Credit: General Motors

The firm previously announced it would scale back outsourcing in a bid to "rebalance" its employment model , while at the same time looking to hire around 10,00 IT workers. GM said it plans to conduct 90 percent of its technology projects in-house in the next three to five years in a bid to become more efficient and productive. 

GM will also reduce its datacenter numbers by 90 percent. Instead of relying on 23 datacenters worldwide, the car maker will instead rely on just two, both based near the Michigan technology center, according to the Reuters wire.

Currently, GM has around only 10 percent of its IT staff within the company. The remaining 90 percent will be clawed back in the coming years as the trend towards increasing levels of mobile technology transmit from the user's pocket into the vehicle. 

Shifting resources back into the company may sound strange as most technology companies outsource product and software development to partners and other companies in a bid to save costs and to strategically conserve cash and resources. 

The move by GM, however, seems to go against the outsourcing trend. Because GM has a particularly invested future in technology within its automobiles and cars, it shouldn't come as much of a surprise that the firm is raking in its outsourced ventures back to base. 

The firm, which ranks as in the top 20 largest companies worldwide by revenue, did not disclose any figures relating to the investment or the IT employment turnaround. GM dropped by 0.81 percent in early morning trading today.

Topics: IT Priorities, IT Employment, Software Development

About

Zack Whittaker writes for ZDNet, CNET, and CBS News. He is based in New York City.

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