GM to hire 10K IT workers, cut outsourcing

GM to hire 10K IT workers, cut outsourcing

Summary: General Motors will be upping its IT capabilities and aims to perform 90 percent of all its IT work in-house by hiring some 10,000 tech professionals in the next 3 to 5 years.


General Motors (GM) will look to hire about 10,000 IT workers worldwide over the next 3 to 5 years as it aims to "rebalance" its employment model and work to conduct 90 percent of all tech projects in-house by then.

The automobile company said in a statement last Friday it is looking to hire up to 500 new employees in Texas, United States, for its IT innovation center which opened last week. Positions it is looking to fill include software developer, project managers, databvase experts, business analysts and other IT professionals, it revealed.

"We want IT to keep up with the imagination of our GM business partners, and to do that, we plan to rebalance the employment model over the next three years so that the majority of our IT work is done by GM employees focused on extending new capabilities that further enable our business, said Randy Mott, the company's CIO, in the statement.

This 500 positions is part of a wider recruitment effort to bolster its internal IT capabilities, which is still being crafted, according to Mott in a separate report by Bloomberg Businessweek. Asked if he would be hiring more than 10,000 workers, he said it would be within "that range but less than that".

He added the carmaker plans to bring most of its IT work in-house, from 10 percent currently to 90 percent in the next few years.

Computerworld stated in its report last Friday GM was used to relying heavily on outsourcing companies to run its global IT for several years. Electronic Data System (EDS), which was once owned by GM before being spun off and acquired by Hewlett-Packard in 2008, was one of the main beneficiaries of its outsourcing policy, the report noted. 

Topics: IT Employment, Outsourcing

Kevin Kwang

About Kevin Kwang

A Singapore-based freelance IT writer, Kevin made the move from custom publishing focusing on travel and lifestyle to the ever-changing, jargon-filled world of IT and biz tech reporting, and considered this somewhat a leap of faith. Since then, he has covered a myriad of beats including security, mobile communications, and cloud computing.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.


Log in or register to join the discussion
  • GM to hire 10K IT workers, cut outsourcing

    Yes, but it's all going to take place at GM facilities in China. You conveniently forgot to mention that you Asian A$$hole!
    • Careful

      Your bigotry is showing.

      Also, where do you get that? According to the cited reports, at least 500 of these positions are in Austin, TX. No other places were mentioned. Indeed, since the article describes 90% of GM's IT currently being outsourced, it is likely that many of these positions will be in the U.S. if the idea is to move towards insourced IT.
  • Bigotry maybe, but could be hint of truth.

    While the article did mention that 500 jobs could be coming to TX, it does not state anywhere where the remaining 9,500 would be. GM does have offices around the globe and there is nothing stopping them from opening a 5000-6000 person development center in India or China. The went the direction of spreading their Engineering development around the world to "areas of excellence" - why would IT development and support be any different?
    Harlon Katz
    • and yet politicians, then or now, say

      We need more educated people. Companies offshore due to cost (wages to people who spent on college degrees).

      With offshoring, jobs vanish and wages drop down as well... yet college costs do not.

      Adding in these and others factors, like those I added below, all college students deserve a full refund... sorry for the controversy but i will add detail later... after all, if we want a level playing field then we don't stack the odds...
      • Re: "We need more educated people. Companies offshore due to cost..."

        You make it sound like "companies", and the jobs they provide' have some kind of independent existence, quite apart from the "educated people" who start them and run them. Without these "educated people", where would jobs come from?
    • Nothing stopping them

      "GM does have offices around the globe and there is nothing stopping them from opening a 5000-6000 person development center in India or China"

      There is nothing stopping them, sure, but there is nothing in the article indicating that this is what GM intends to do.

      Really, I'm amazed how much people are reading into this article that simply isn't there.
      • They have multiple data centers across USA>

        Most of the new jobs are in Michigan near the headquarters. They also have sites in California. The 10,000 numbers are for their sites across the USA.
  • just more bull

    Maybe just maybe if they kept the jobs here in the states we would not be in such bad shape now. But yes lets keep creating jobs over seas who knows maybe we will fall far enough some country will send its manufacturing jobs to us.
    • and at us taxpayers' expense

      see my post below but our money paid for this migration, this bailout, and yet we who study and are told to aren't seeing... but I digress or am about to...
  • hmmm

    1. Gm offshored for years while taking corporate welfare and later, bailouts by both Bush and Obama

    2. Article obfuscates- 500 in US and 9500 elsewhere, so what does "offshoring" mea

    3. Why should companies that offshore get subsidy and bailout and other entitlement from taxpayers when offshoring hurt them followed by gm being hurt as a result of doing it?
    • No

      No, the Article states that 500 positions would open up in one particular datacenter in Texas. It does not indiate that these are the only jobs that will open up in the U.S.... or even in Texas for that matter.

      People here are reading waaaay too much into this article. Way more than it actually states, in any case.
  • Outsourcing and offshoring have passed their peak

    Both oursourcing and offshoring have failed to produce the desired results. Money has been saved but at the cost of lack of industry knowledge among a company's IT staff and less than stellar results from young, but inexperienced, foreign workers. More and more companies are seeing the value of bringing IT back in house.
    • Results

      To be clear, offshoring and outsourcing haven't failed to produce the desired results in all cases. I outsource the delivery of documents and packages to FedEx, UPS, and the USPS rather than build my own transportation network. The results I desired were (A.) cost savings and (B.) efficient, reliable delivery. Both results were produced; the outsourcing initiative is a success.

      That said, companies are learning that there's a time to outsource, and a time not to. Just as outsourcing isn't always wrong, neither is it always right.
  • Author gave sources...

    Author gave links to GM and Bloomberg reports, but it's quicker to blast an uninformed response I guess. The 500 in Texas doesn't mean that's all there is in the U.S. This is a 3-5 year plan and just so happens they are starting here. Also, as the article mentioned, a lot of the outsourcing currently isn't offshoring. They are making the positions internal instead of a vendor like EDS/HP. If you work in an office (even factories have some offices) and have a printer jam the guy who comes and fixes it for $75 an hour is probably a contract employee who lives right around next door to one of the GM employees on the floor. Of course the vendor gets more of that money than the contractor.
  • Mobile App Development

    With over 20 years IT and automotive experience, I think this is angreat move for GM to exercise more control over their critical software development. But as the past experiences has indicated doing everything in house is not the most efficient and cost effective. My firm specializes in software development for mobile devices.