GM to shift 3,000 Hewlett jobs to its payroll

Thu Oct 18, 2012 2:39pm EDT

The General Motors logo is seen outside its headquarters at the Renaissance Center in Detroit, Michigan August 25, 2009. REUTERS/Jeff Kowalsky

The General Motors logo is seen outside its headquarters at the Renaissance Center in Detroit, Michigan August 25, 2009.

Credit: Reuters/Jeff Kowalsky

(Reuters) - General Motors Co (GM.N) will shift 3,000 Hewlett-Packard Co (HPQ.N) employees to its payroll as part of a sweeping program to overhaul the automaker's information services, GM said Thursday.

GM described as "cost-neutral" a new multi-year contract with HP that will bring the computer-services employees now working on GM business inside the automaker over the next six months. Most of the new employees are located in the United States, GM said.

The two companies declined to provide the value of the contract. They said an unspecified number of HP employees will remain at the computer-services company to work on the GM business.

The latest move, announced by GM Chief Information Officer Randy Mott, further bolsters the automaker's efforts to beef up its in-house IT capability.

Over the past two months, GM had said it will hire 2,000 workers to staff new IT centers in Austin, Texas, and Warren, Michigan, with plans to open two additional centers in the United States.

In July, the automaker said it would reverse years of outsourcing IT work. GM now outsources about 90 percent of its IT services and provides the rest in-house, but it wants to flip those figures in the next three to five years.

The IT overhaul plan was outlined by Mott to GM's 1,500 IT employees in June. The former Hewlett-Packard executive said the moves will make GM more efficient and productive.

(This story corrects name of GM chief information officer In fourth paragraph)

(Reporting By Paul Lienert in Detroit; editing by Sofina Mirza-Reid and Gerald E. McCormick)

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Comments (1)
Darr247 wrote:
They’ve done this before, when they bought EDS. It’s a way to shift profits off the books so they don’t have to give it to the unions in profit sharing. That move should make the republicans happy.

Oct 20, 2012 2:07pm EDT  --  Report as abuse
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