General Motors (NYSE:GM) is about to take an unusual step for a large manufacturing company.
Instead of outsourcing more of its IT infrastructure and services, the automaker plans to bring its data centers, software and networks back under its own control.
Mott is looking to consolidate the company’s IT functions, centralize IT planning and gain more access to company data regarding manufacturing and consumers. By managing its own IT infrastructure, Mott hopes to enhance the speed and accuracy of data available to GM executives and managers. The effort is similar to Ford‘s (NYSE:F) “One Ford” IT strategy.
Currently GM outsources 90% of its IT services. By 2015, the company expects to outsource only about 10% of IT functions.
Naturally, that will require a significant investment in technology and potentially thousands of new IT personnel
It may also spell trouble for companies like EDS which currently handle billions of dollars in GM IT services every year.
GM shares rose more than 1% in Friday trading.