Last week, General Motors and Hewlett-Packard announced agreements aimed to speed up the automaker’s ongoing IT transformation. As part of the agreements, GM will take on 3,000 HP employees already working on GM’s business at HP, thereby resulting in a cost-neutral solution to GM. In addition, the two organizations have signed new multi-year project services and software agreements, with GM purchasing certain HP software, including IT Performance Suite, Enterprise Security Suite, Vertica and Autonomy Software.
According to GM CIO Randy Mott, the steps will expedite GM’s IT transformation with increased innovation, speed of delivery, and reduce cost of ongoing IT operations. The initiatives are part of GM’s newfound strategy to in-source IT operations from a highly-outsourced structure in an effort to allow IT to deliver innovation rather than perform operations-related duties. As part of the strategy, GM has already announced two IT innovation centers (in Austin, Texas and in Warren, Michigan), with two more locations planned to be announced in the future.