General Motors is likely to hire 3000 of HP’s IT service workers, a move completely different from the way General Motors does IT. Randy Mott, the chief information officer, General Motors said this is a very strategic decision keeping in mind the requirements of the company.
These 3000 HP employees would work as contractors for General Motors, and then eventually move into the customer payroll department. A spokeswoman for HP said that this move would not alter the plan of 29000 head force reduction that the company targets in the month of September.
“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,” Mott said. “Transforming our internal IT operations will give us the resources, tools and flexibility we need to provide better services and products to our global GM customers.”
General Motors wants move from the highly outsourced to a highly in sourced model, making it the sought after IT innovator. It seems to be making some deliberate efforts to enter into the domain of IT, one of which is opening of “IT innovation centers” in Austin, Texas, Warren, Michigan, and in two other unannounced, locations.
In addition to taking on a few thousand of its employees, GM has bought some new HP software, including the IT Performance Suite (a management solution for an entire enterprise IT infrastructure), the Enterprise Security Suite and Vertica and Autonomy products (both are HP’s data-analytics brands).
HP and GM have had a business relationship for more than 20 years now.
General Motors has spoken publicly about at least one of these data centers, a US$130m construction project in Warren, announced in June 2011 and slated for completion in 2015.
When HP CEO Meg Whitman initially announced her big restructuring plan in May, the company said it would lay off or send into early retirement 27,000 employees over a span of three years. In September, however, HP increased that headcount up to 29,000.
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