General Motors and Hewlett-Packard (HP) have entered into new multi-year project services and software contracts. In this regard, the vehicle manufacturer will take on 3,000 HP employees, who are already working on GM’s business.
These agreements are aimed at accelerating GM’s ongoing IT transformation efforts. The transition of these 3,000 employees from HP’s to GM’s workforce provides a cost-neutral solution for the OEM.
“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. 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,” said GM Chief Information Officer, Randy Mott.
GM has also purchased software from HP to further accelerate the transformation of applications development, support and high-performance operations computing capabilities.
As announced earlier, GM is moving from an out-sourced, to a largely in-sourced business model. It is changing the mix so that more employees are focussed on innovation rather than operations.
The OEM has, in this regard, announced new IT innovation centres in Austin, Texas and Warren, Michigan. Two more locations for similar centres are yet to be announced.