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General Motors To Improve Efficiency With 10,000 New IT Employees

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(Photo: Stock.xchng)
(Photo: Stock.xchng)

BUSINESS

  • GM aims to bring 90% of IT jobs in-house, up from 10% today
  • GM to open four IT centers in US to improve business procedures, develop technology
  • First tech center now open in Austin, TX

Leading American automaker General Motors Co. plans to add up to 10,000 information technology positions worldwide over the next five years in an effort to eliminate the company’s reliance on outside IT organizations.

The new jobs will focus on making the company more efficient, which, the company hopes, will lead to reduced costs. GM also plans to develop software, with the goal of boosting revenue and market share.

GM has been outsourcing its IT needs for several years. Currently, only 10% of IT jobs are in-house, but the auto maker intends to increase that number to 90% in the next 3 to 5 years.

The hiring spree will include recruiting business analysts, project managers, database experts and software developers.

GM Launching IT Centers

As part of its overall business efficiency plan, GM will open four information technology centers in the US. Each staffed with about 500 people, the new IT centers will focus on improving business procedures and getting the latest technology into GM vehicles sooner.

The first center in Austin, TX, opened recently in early September; Austin was chosen because it is a tech-focused area and has the necessary skilled workforce that GM was seeking.

Austin is also home to technology leader Dell, Freescale Semiconductor Ltd. and the University of Texas at Austin.

GM has yet to make a final decision on the remaining three locations, nor has it revealed which cities are in the running. Tax incentives may play a role in the final decision.

GM is currently in the process of consolidating 23 global data centers into two as part of a strategy to cut costs while increasing efficiency and speed.

Key Statistics - World Automotive Manufacturing Industry (source: MarketLine)

  • In 2011, the world automotive manufacturing industry had revenue totaling $1.4 trillion. For the period 2007- 2011, this represents a compound annual growth rate (CAGR) of 2.5%.
  • Between 2007-2011, industry consumption volume grew at a CAGR of nearly 3.5%, reading over 136,500 total units in 2011.
  • For the five-year period 2011-2016, industry performance is predicted to accelerate. By the end of 2016, the industry should have a CAGR of 7% and be valued at $2.1 trillion.

By Melina Druga for
Melina Druga is an American writer and editor. She is the author of Enterprising Women: Practical Advice for First Time Entrepreneurs.

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