GM to hire 3,000 HP employees as it insources IT work
CIO Mott wants HP workers who had worked on GM IT operations under outsourcing pacts to become 'well-integrated' into the GM team
Computerworld - HP has agreed to transfer 3,000 of its employees to the General Motors payroll, as the automaker moves IT operations in-house, the two companies announced Thursday.
GM CIO Randy Mott said the car company hopes to add the HP workers, part of a team running GM's IT operations under outsourcing contracts, over the next six months.
Mott, named CIO of GM earlier this year, decided early on in his tenure to bring most of the automaker's IT work in-house, a major shift for a company that has long relied on outsourcers.
Under Mott, GM is consolidating and automating IT operations and plans to use the savings to work on innovating its product lines and business operations.
GM plans to reduce its worldwide data center roster from 23 to two within three years, as well as cut the number of its applications by about 40% "as we drive more application commonality and common processes across GM," said Mott.
In a conference call, Mott said the former HP employees will see their jobs "changing pretty rapidly over the course of the transformation," as the company feels that it's important that the workers become "well-integrated into the GM team."
This new focus on IT innovation will be accomplished in a "really self-funded" way using savings generated by consolidating the data centers and automating "standard IT functions," Mott said.
The HP employees to be offered jobs are based in the U.S. and already support the automaker's business systems, Mott said.
Despite the loss of outsourcing agreements, HP will continue to have a major role at GM under the new agreement.
The contract calls for the expanded internal GM IT operation to rely on HP software, including the networking, operating and monitoring software in the IT Performance Suite.
GM also agreed to use HP's Enterprise Security Suite, and the data analytics and business intelligence software in the Vertica and Autonomy Software product lines.
The value of new software contract wasn't disclosed, though George Kadifa, executive vice president, HP Software, said "this is the largest deployment of our full product portfolio in the world, second to none, at this stage."
HP will also continue to provide some services to GM.
"There is a good chunk of employees that will stay with HP that will continue to provide services to General Motors," said Mike Nefkens, acting global HP enterprise services leader, during the conference call.
GM has for decades relied heavily on outsourcers to run its data centers and to write and manage its applications. A major part of this work was contracted to the former Electronic Data Systems, which was acquired by HP in 2008.
- Network firewalls aren't dead yet
- Are CIOs losing power?
- As Unix fades away from data centers, it's unclear what's next
- Goldman Sachs, with 10,000 tech workers, embraces open computing
- IT managers are increasingly replacing servers with SaaS
- Microsoft sees huge potential in fuel cells
- Snap, crackle, pop: Electrical troubles shed light on NSA's data center
- Tornadoes and data centers are OK in Oklahoma
- It's twilight for small in-house data centers
- GM CIO calls HP hiring probe a 'fishing expedition'
- Silicon Valley's 19 Coolest Places to Work
- Is Windows 8 Development Worth the Trouble?
- 8 Books Every IT Leader Should Read This Year
- 10 Hot Hadoop Startups to Watch
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Infographic: Converged Infrastructure Benefits This Infographic quantifies the savings organizations are realizing from increased deployment speed, higher availability, and lower annual costs.
- CIOs Deliver Productivity Breakthroughs with Intelligent Digital Signage Retailers have long recognized the influence that digital signage provides over a shopper's point-of-purchase decision making process.
- Going Paperless? Here's What You Need to Think About As makers of some of the world's most popular PDF solutions, we often consult with businesses & governmental agencies that have the goal...
- The Big Data Opportunity for HR and Finance If CEOs, CFOs, CIOs, and CHROs want to drive their businesses forward, they will need to quickly recognize the enormous value of big...
- Top 4 Digital Signage Fails Join RMG Networks for a look at four of the most common reasons digital signage fails in corporate businesses. Learn about strategies to...
- Building Tomorrow's Infrastructure Listen to this podcast to discover how Crider Foods worked with PC Connection to update their IT infrastructure, while maintaining compliance and control. All IT Outsourcing White Papers | Webcasts