With 3000 jobs on the line, GM begins to return IT to the fold

With 3000 jobs on the line, GM begins to return IT to the fold

Summary: GM begins insourcing formerly external IT operations

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In a more contrary to much of the way IT operations are currently handled in large enterprises, GM has decided to move from having much of their IT operation outsourced to bringing the bulk of those operations back under their internal IT umbrella. Announced as a three year plan back at the beginning of September, GM and HP announced yesterday that they would be transferring 3000 employees who work for HP on their GM contracts, directly to GM. The jobs being transferred internally are all located in the US and GM hopes to integrate all 3000 jobs into their current operations within the next 6 months.

GM, who currently operates 23 datacenters worldwide, is planning on reducing that number to two as part of their three-year plan. The plan also includes a goal of reducing the number of different applications that do the same job, streamlining and improving operations by standardizing on a much smaller set of appropriate backend applications. And while they are doing this they expect to increase the number of internal IT jobs by as many as 10,000.

GM CIO Randy Mott, who came to GM from the job as HP CIO, talked about the importance of building well-integrated teams and spoke to a desire to make IT a center of operations that drove business forward. And GM is not abandoning HP; they will be implementing a full range of HP solutions, described by George Kadifa, executive vice president of HP Software, as “ the largest deployment of our full product portfolio in the world, second to none, at this stage."

Topics: Data Centers, IT Employment

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6 comments
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  • Let's hope this is a trend!

    Outsourcing and offshoring has been a betrayal of would-be loyal employees, and perhaps this is finally a recognition that corporate interests are not served by drain of technical and business knowledge either.
    Techboy_z
    • And the middle class

      Especially as taxpayer money has helped corporations offshore in the first place... on top of other subsidies they take for granted...

      http://www.pbs.org/newshour/bb/business/july-dec12/makingsense_10-16.html
      and
      http://www.ontheissues.org/SenateVote/Party_2005-63.htm

      both have more to say, and scratch the surface, of a large and complicated issue.

      As for datacenters, noting the speed of light and other issues of physics, 2 might be too few for global interchange and the delays in global conferencing can be grating as well... and needlessly expensive...

      It is good to see well-paying jobs returning, as that adds incentives for people to go to college, re-train, and do their part in good faith. Especially with increased college and other costs, but who said it was 1973 anymore?
      HypnoToad72
    • Sadly

      ...it's almost certainly a ripple in the face of a tsunami.

      But i wish, like you, it were to become the trend.
      thx-1138_
  • GM, who?

    "GM, who currently operates" should be written as "GM, which currently operates". GM is not a human, it is a thing.
    J-Hermes
    • Re: GM is not a human, it is a thing.

      Corporations are legally people, too.

      Strange, but true.
      ldo17
  • This is about industry expertise, not off shoring

    Off shoring is just a subset of the issues.

    Large companies in specialty industries, automakers, airlines, etc... have very specific business needs that don't transfer well from grocery stores and the like. And while outsourcing CAN work well for a time the incentive for the best people who are transferred soon realize their career track is not about the industry they came from but about climbing the ladder of the oursourcing firm. So after a while the orginal firm gets stuck with lots of lower level people who they get to train in their industry specifics with the best of them "skipping town" when they get good and leaving behind the people content to "walk the treadmill".

    Notice that GM BOUGHT EDS way back when (1984) and transferred their IT operations to the subsidiary. They then spun it off and HP acquired it. Now GM is reversing a 25+ year mistake. Building cars is not the same a processing medicare claims and running banking IT operations.

    And no matter how cheaper the bean counters think it is to outsource it is almost always a long term loose for companies like GM.

    As to the off shoring bit, most companies that out source give up the ability to pick the staff assigned to them. So it gets to be real fun when a new developer in India is 12 hours off cycle and you're trying to coordinate user interface design issues and such. Or just getting them up to speed in your industry.
    raleighthings