GM Vows To 'Insource' Most Of Its IT Jobs: Beginning Of A Trend?

GM Insource jobs

U.S. workers have been dealing with the effects of outsourcing for years now. But in a trend that many no doubt would like to see continue, General Motors Co. has committed to bringing back technology jobs it now outsources.

The automaker currently outsources about 90 percent of its information-technology services, including running data centers and writing applications, to other companies. But in a 180-degree turn, newly installed chief information officer, Randy Mott, who joined GM in February, wants to "insource" 90 percent of the company's IT operations within three years, InformationWeek reports.

Bringing back IT jobs at the scale GM needs would require the Detroit-based company, which currently employs about 1,500 IT workers worldwide, to go on a hiring binge to staff the three U.S.-based software development centers it's planning to build. Those would include jobs such as software developers, project managers, database experts and business analysts, according to the magazine.

In doing so, GM follows a path first blazed by Ford Motor Co. about five years ago. The plan focuses less on the bottom line and is more concerned with getting the most value from IT development.

But the move is rare. InformationWeek notes that in a survey it conducted of 513 business-technology professionals last year, just 4 percent said their companies plan to decrease IT outsourcing. Seventeen percent were weighing their options, and the remaining 79 percent were maintaining or increasing their outsourcing.

One reason for that is that companies have cheap and reliable access to virtual networks, known as cloud computing. The technology allows businesses to take advantage of low-cost labor in countries such as the Philippines, Malaysia and India, where wages are a fraction of those in the U.S. and other developed nations, according to Staff.com, a website that allows employers to hire workers virtually through the Internet.

Not only can workers be hired on the cheap, Staff.com boasts that its software allows employers "to track low-wage workers minute-by-minute using time-tracking software -- all in the cloud." Moreover, global access permits employers to find people who can work around the clock.

Those attributes, says the site's founder and CEO Rob Rawson, make continued outsourcing a no-brainer.

For more on the wage disparities among workers around the world, check the infographic below from Staff.com






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gcstud

Before you get too excited about this.
GM outsourced to another US company for IT work. That company, in turn, may have outsourced work to subordinate companies in foreign lands.

GM has foreign offices and although GM will insource IT, it doesn't mean the work will be done in the USA.

July 11 2012 at 12:50 PM Report abuse rate up rate down Reply
ibebigbill

I too am a victim of outsourcing twice in 3 years. That part is bad enough but before I was laid off the way in which we were to our jobs to integrate these outsourced workers was even more dumbfounded. You hire these people and companies because you are trying to save a few bucks but you are turning right around and losing in man hours because you are now doing double work to accommodate this system.

July 11 2012 at 12:50 PM Report abuse rate up rate down Reply
jjr526

But...this will impact India and Pakistan employment numbers....be careful GM.

July 11 2012 at 12:45 PM Report abuse rate up rate down Reply
isadora05

I'd like to see a list of the companies who are insourcing more jobs so I can use/buy their products/services. And vice-versa I'd like to see a list of companies who are still outsourcing, so I can boycott them! (Unfortunately, the latter would be to big a list to compile). Let's make sure Obama's plan to reward companies for bringing back jobs to America gets a chance in his 2nd term!

July 11 2012 at 12:41 PM Report abuse rate up rate down Reply
rick

My only comment after reading and observing the graph is...... what the hell is going on in Australia that they can create such well paying jobs? I mean besides minerals and actors what'e the deal?

July 11 2012 at 10:17 AM Report abuse rate up rate down Reply
Tammie

I was amazed when I saw medical transcriptionist on here!! I am a medical transcriptionist and have lost more work to outsourcing than any other way. One office was part of a larger U.S.-wide group and was forced to change to outsourcing to match rest of organization. I bumped into several of the people that worked there and found out that they didn't start getting transcription back for two weeks. I have no idea what the quality was like but have heard from other sources that often it isn't as good as hoped. Just the variety of southern accents I've dealt with can be challening for some one who has spoken English their whole life!! Please understand, I don't have any ill-will toward any race of people but I would think that something as important as one's medical record would be better off handled by someone most familiar with the language spoken in the country of origin.

July 11 2012 at 8:18 AM Report abuse rate up rate down Reply
dollibug

WAKE UP AMERICA....it is time for all AMERICAN COMPANIES to take a stand and BRING BACK THE JOBS to good ole USA.....Washington Leaders should find ways for companies to get tax breaks for bringing jobs back to the USA....AMERICA needs to take care of AMERICA....instead of trying to take care of the world...SAVE OUR OWN COUNTRY FIRST....

July 11 2012 at 7:48 AM Report abuse +4 rate up rate down Reply

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