General Motors and Hewlett-Packard Co. have announced multi-year project services and software contracts that will boost GM's ongoing IT transformation. The goal of collaboration is to 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.
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 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.
"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.