3,000 HP Employees to Join GM in Insourcing Move

General Motors LogoDetails are emerging about how General Motors will implement CIO Randy Mott’s massive three-year plan to move almost all of GM’s IT services in-house, bringing everything from data centers to software development into the fold and taking work away from outsourcing companies such as HP/EDS, IBM, Capgemini and Wipro.

Mott isn’t simply taking work away from the contractors — he’s taking warm bodies, too. His first step will be to transfer 3,000 Hewlett-Packard employees who already work on the GM account into his company within the next six months. That’s certainly one way to speed up the transformation while avoiding lots of training downtime.

The employees in question are all U.S.-based and already support GM’s business systems. Still, in a conference call, Mott said the former HP employees will see their jobs “changing pretty rapidly over the course of the transformation.”

GM plans to reduce the number of data centers it uses from 23 to two within three years, and to cut the number of applications it uses by 40 percent. One way to do that is to make a new commitment to standardize on HP products and services, including the networking, operating and monitoring software of its IT Performance Suite. GM is also signing on to HP’s Enterprise Security Suite and the data analytics and business intelligence software of the Vertica and Autonomy Software product lines.

According to George Kadifa, HP’s vice president for software, the deal marks “the largest deployment of our full software portfolio in the world.”

Mott also said he’s seeking out more talent, noting that GM’s IT department needs application, Web and database developers for all aspects of its business. As previously reported, GM is also staffing several IT innovation centers, the first two of which are located in Austin and Warren, Mich.

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