GM and Hewlett Packard Partner On Multi-Year Project
General Motors Company and Hewlett-Packard Company have partnered with each other as part of a multi-year project. GM will work with HP over several software contracts that will accelerate the automotive company’s IT transformation efforts. The agreements will provide GM with a cost-neutral solution where 3,000 HP employees already working on GM’s business will transition into the GM’s employment rolls.
“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,” stated 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.”
General Motors is moving from a highly outsourced organization to an in-sourced business model. This way employees will focus more on innovation rather than operations. GM recently announced new IT innovation centers in Austin, Texas and Warren, Michigan. Two more center locations are yet to be announced.
“GM is an automotive icon and HP values the strategic partnership we have had for more than two decades,” stated HP acting Global Enterprise Services leader Mike Nefkens. “We look forward to helping GM deliver even greater products and services to market.”
GM purchased HP’s IT Performance Suite, Enterprise Security Suite, Vertica, and Autonomy Software.
Hewlett Packard’s subsidiary Electronic Data Systems (EDS) used to be owned by General Motors. In 1984, General Motors acquired EDS for $2.5 billion and then they spun it off as an independent company in 1996 and became one of their largest clients. Then Hewlett Packard acquired EDS for $13.9 billion in May 2008. EDS is now known as HP Enterprise Services.
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