General Motors, which is shifting computer technology functions into
the company from outside firms, plans to open four new information
technology centers in the U.S., each staffed by at least 500 people.
The first of the centers, in Austin, Texas, is already open with a
handful of people, and hiring will ramp up gradually as GM finds the
right workers to fill the jobs, the company said Friday.
It's all part of a move to bring 90 percent of GM's information
technology from outside companies in-house, which GM believes will make
the company more nimble and efficient. GM could add as many as 10,000
people to do the work globally in the next three to five years, said
Randy Mott, the company's new chief information officer.
"We are changing the mix very substantially to have a lot more people
doing development and innovation," Mott said on a morning conference
call.
The positions would have to be self-supporting, an investment with a
return that helps GM cut information technology costs and bring changes
that would boost market share and revenue, Mott said. The innovation
centers would develop software and change processes to help GM bring new
vehicles to market faster, he said. "Every area of our company is in
the midst of transforming," Mott said.
Currently most of GM's information technology is contracted out to
other companies, spokeswoman Julie Huston-Rough said. The work now done
in-house focuses on keeping the company running rather than new
technology, she said.
GM is talking with other cities about the remaining three U.S. sites,
and it would not reveal which areas are candidates. Government tax
incentives were not part of the decision to locate in Austin, but it's
something GM continues to look at as it opens the centers, Mott said.
The automaker said Friday that it is hiring software developers,
project managers, database experts and business analysts in Austin,
which was picked because it has a ready workforce with the skills
General Motors Co. is looking for. The Austin metropolitan area is home
to a growing technology community that includes the University of Texas
at Austin and computer maker Dell Inc.
GM says its information technology innovation centers will help to
get breakthrough ideas into the company's cars and trucks. It's also
intended to improve GM's business processes and drive down costs.
Huston-Rough says the new technology centers are separate from a GM
plan now under way to consolidate its 23 global data centers into two in
an effort to cut costs and increase speed and efficiency.
GM shares rose 52 cents, or 2.3 percent, to $22.97 in Friday morning
trading. In July the carmaker's stock hit $18.72, its lowest level since
selling for $33 in an initial public offering almost two years ago. But
the shares have risen recently.