GM, HP Partner To Expand Automaker's IT

General Motors and HP Team Up on IT Transformation

Multi-year agreement includes project services, software

GM Tech Center-Warren, MI

DETROIT and PALO ALTO, Calif., Oct. 18, 2012 /PRNewswire/ -- General Motors and Hewlett-Packard Co. announced today new multi-year project services and software contracts that will accelerate GM's ongoing IT transformation efforts and deliver seamless, global services and products throughout the automaker's operations. 

These agreements provide GM a cost-neutral solution in which 3,000 HP employees already working on GM's business will transition to the auto company's employment rolls.

"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," said GM Chief Information Officer Randy Mott. "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." 

As previously announced, GM is moving from a highly out-sourced to a largely in-sourced business model, changing the mix so more employees are focused on innovation rather than operations. As part of this, GM has announced new IT innovation centers in Austin, Texas, and Warren, Mich., with the locations of two more centers yet to be announced. 

"GM is an automotive icon and HP values the strategic partnership we have had for more than two decades," said Mike Nefkens, HP acting Global Enterprise Services leader. "We look forward to helping GM deliver even greater products and services to market."

GM also has purchased HP's industry leading IT Performance Suite, Enterprise Security Suite, Vertica and Autonomy Software, all of which will further accelerate the transformation of applications development, support, and high-performance operations computing capabilities.

"GM needed a solution to provide confidence, insight and agility to perform better," said George Kadifa, executive vice president, HP Software.  "They didn't need to look any further than HP's Performance Suite and are the first customer to purchase the full suite of software to enable their business."

*****

Author’s note: This is the latest chapter in the renaissance of General Motors. The most important part of this announcement is that GM is hiring internally, rather than outsourcing. This should be great news for everyone in Detroit, Michigan, the Great Lakes region, in fact the entire U.S.

Insourcing and reshoring are two trends that  I’ll have more on in the days ahead, as I head into the final production stage of my next book, Manufacturing Renaissance.

I would also like to invite you to check out Last Chance Mile: The Reinvention of an American Community. Medical device manufacturing plays a large role in the first book to focus on Grand Rapids, Michigan and its Medical Mile. 

Last Chance Mile is available at Schuler Books & Music in downtown Grand Rapids and on 28^th Street in Kentwood, at the Abbott Press online bookstore and at www.rodkackley.com