five reasons GM believes ‘insourcing’ will be more effective than outsourcing:
—Outsourcing has led to too many software applications. Mott estimates GM has more than 4,000 applications throughout the world, and many can be eliminated.
—GM needs to expedite product development and decision-making. The company’s executive leadership is frustrated at bulky technology systems that slow innovation.
—IT contractors don’t understand the auto industry. Mott said IT contractors have little knowledge of the demands facing the auto industry. By hiring its own IT development staff, GM can empower workers to deliver IT innovation in the context of how it will improve vehicle development.
—GM can afford the cost of running its own data centers. The automaker is building a data center at its technical center in Warren, Mich. It will be one of two data centers the company will use, instead of the current 23.
—GM believes it can find cost-effective, high-quality IT talent in Michigan and elsewhere throughout the world. Mott said the company would lean on major research universities to generate talent and seek out talent in regions of the country where IT companies are concentrated.