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

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.

SHARE:

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, Software Development, IT Employment

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

Talkback

9 comments
Log in or register to join the discussion
  • Cool news

    Especially as our tax dollars helped bail out this company since December 2008 (Bush stopgap, which happened before Obama's...)

    Any US company that has taken taxpayer money does have an obligation to this country. Cease all corporate welfare, refund what you were given during this transition to the "new normal", refund workers who have lost out thanks to offshoring, amongst other issues, and then we'll start to reveal what a "free market" truly is... and the big companies and Wall Street might not like it then, because their actions really would have consequences, instead of being bailed out at everyone else's expense.
    HypnoToad72
  • The only problem is...

    No one wants to live in Michigan :)
    dtdono0
    • Ha

      I live in Michigan. ;-)
      statuskwo5
    • I live in Michigan

      I live in Michigan...and I WANT to live in Michigan!!
      MustangGTX
  • Why not directly link to GM?

    "The firm previously announced it would scale back outsourcing in a bid to "rebalance" its employment model,"

    So this links to another ZDNet article, which links to the GM site . . .

    . . . why not just directly link to GM's website?
    CobraA1
    • why ask a question

      when the answer is so obvious?
      vpupkin
  • I wish I could say it's because they grew a brain . . .

    "The firm previously announced it would scale back outsourcing in a bid to "rebalance" its employment model,"

    I wish I could say it's because they grew a brain and realized that we need more jobs here, and we shouldn't be supporting some of the terrible stuff in China.

    However, I doubt it. More likely, it's probably that places like Foxconn are becoming more visible to the public, which is making it more risky to do things that they know are wrong.

    And 1500 jobs? Meh, that just scratches the surface. Last I checked, we need millions. Frankly, I think this is more posturing to present a pretty face to the public, rather than an actual attempt to make things right.
    CobraA1
    • 10,000 IT Jobs!

      "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." And so the snowball rolling downhill transforms into an avalanche, thus the explanation of economics stimulus.
      dirtfan
  • GM, aka: Gov't Motors, is still indebted to the federal government,

    and Obama and the democrats are likely, using GM to make Obama and the democrats look good.

    So, if one were to dig deeper, one might actually find a lot of arm-twisting by the Obama administration to bring back the outsourced jobs, and for the company to hire more people. After all, they are still Government Motors, which still owes the government around $25 billion.
    adornoe