GM now outsources about 90 percent of its IT services and provides 10 percent of that work in-house. Within the next three to five years, GM hopes to reverse those percentages in part by hiring “thousands” of new software developers, database experts and others globally, GM spokeswoman Juli Huston-Rough said.
The IT overhaul is spearheaded by GM Chief Information Officer Randy Mott, who outlined the plan to GM’s 1,500 IT employees in June.
The IT services industry has flourished in recent years as big corporations bet that outsourcing computer operations would cut expenses and allow managers to focus on their core businesses.
If Mott’s strategy enables the U.S. automaker to boost efficiency without increasing costs, it could be a blow to the industry because other companies might follow GM’s example, affecting IT services leaders including Hewlett-Packard Co (HPQ.N), Dell Inc (DELL.O), IBM (IBM.N), Xerox (XRX.N) and Infosys Ltd (INFY.NS).