GM's new strategy for IT

Posted by Motive Retail on Sep 14, 2012 2:53:31 AM

GM recently announced that it would reverse its IT outsourcing strategy and bring 90% of its IT spend in-house. A new IT “innovation” center has been announced in Austin, TX with others to follow in the Detroit area and other yet-to-be-identified locations. While this is certainly good news for the US job market, GM’s reasoning is not based on patriotism, but rather business interests. GM CIO , Randy Mott, has stated that in-house IT staffers will have a better understanding of the automotive business and GM’s needs than outsourcers. The new GM strategy will “deliver IT that drives down the cost of ongoing operations while continuously increasing the level and speed at which innovative products and services are available to GM customers,” according to Mott.

It makes a lot of sense to us at Motive to have IT solutions delivered by people who eat, sleep and breathe the problems they hope to solve. This is why we believe our managed service model for delivering dealer systems integration solutions delivers superior value to our customers. As discussed in a previous post, outsourced professional services companies operating on a project basis simply cannot be expected to bring the understanding of the problem necessary to produce the best solution. Motive’s approach to dealer systems integration is based on the experience of working on these problems all day, every day and learning from practical experience what does and does not work.

We wish GM and Mr. Mott the best of luck with their new IT strategy.

Topics: Industry Observations, General Motors

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