General Motors insourcing gathers pace with 3000 HP staff join company's payroll

Earlier news that General Motors (GM) was bringing its IT in house and in the process looking to hire 10,000 IT professionals is gathering pace as 3000 HP workers join GM’s ranks.

These are staff already working on GM IT projects but are employed by HP.

GM outsourced almost all it’s IT to HP via a previous agreement with EDS, which HP acquired.

I bet there are 3000 very happy people there. Morale at HP’s services division, which was created after it acquired EDS, is low following lots of redundancies.

GM announced this yesterday. “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,” said GM CIO Randy Mott. “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.”

The other twists in this fascinating story is the fact that EDS was part of GM, from 1984, before it was spun out as a standalone company in 1995. it continued to be GM’s main IT supplier. But it doesn’t end there. Randy Mott, CIO at GM was previously CIO at HP. And only last week HP CEO Meg Whitman has said poor internal IT systems have hampered the business.

GM is probably doing HP a favour and saving it the costs associated with another round of redundancies.

If you work for HP at GM and are being transferred please tell me how you feel by leaving a comment.

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If anyone can pull this unprecedented return to in-house successfully it must be Randy Mott. He knows where all the bodies are and transferring 3000 people with the accumulated systems and service knowledge is a smart move. However this task is going to be traumatic and the industries eyes are on it 24 x 7.

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I worked at EDS for 20 years. Morale wasnt to bad at first, but it declined steadily. I even worked on the GM account for a while. So many times transferred employees asked to be transferred back to their previous companies, I can only imagine the joy of these employees to be leaving EDS. Yes, it will work because these people will work really hard to make sure they dont have to go back to such an uncaring employer. EDS and HP have truly terrible reputations, GM will be welcomed. I would suspect that many EDS staff will be desperately trying to get onto the GM account. I hope GM is wise enough to take the techies but give the awful management a miss.

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