General Motors is reversing gears and will bring more IT functions in-house in coming years, according to a report by the Reuters news agency.
The US automaker, which currently outsources about 90 pc of its IT services, plans to hire thousands of software developers, database experts and other IT staff to manage more of its operations itself, a GM spokeswoman told Reuters.
According to the report, GM’s new CIO, Randy Mott, believes handling more IT in-house will make the group more efficient and more productive.
Reuters also said GM plans to cut its list of IT applications by at least 40 pc, move to a more standardized IT platform and simplify the way it handles data transmissions.
The news agency report, which cited a story in Information Week magazine, said GM will reduce the number of data centers it uses to two from 23 currently.
According to Information Week, Mott’s plan has the following components:
- IT insourcing
- Data center consolidation
- Application consolidation
- Hiring of new IT staff
- Opening 3 Â new software development centers
- Increased financial management of IT projects
- Data warehouse consolidation
Mott joined GM in February from IT group HP, where he led a major IT cost-cutting and reorganization exercise.