As part of a multi-year software and services agreement between GM and HP, the former will hire 3,000 Hewlett-Packard employees to keep IT in-house. The deal is being described as "cost-neutral" by GM, and involves 3,000 HP workers already working on GM's business fully transitioning to the carmaker's payroll over the course of six months.
The move will reduce the cost of GM's ongoing IT operations along with granting the auto giant with better services and flexibility for its global customers. Thus far, GM revealed new IT innovation centers will be built in Austin, Texas and Warren, Michigan, with the location of two more centers yet to be unveiled.
The current HP employees assigned to GM will not be affected by the move.
At the same time, GM purchased HP's IT Performance Suite, Enterprise Security Suite, Vertica, and Autonomy Software offerings. The software will be used to automate some tasks, while the new hires will be assigned to innovate.
The move is part of GM's strategy to reduce outside contracts that handle IT from 90 percent to just 10 within five years. It's estimated the automaker has an annual IT budget of $3 billion. GM and HP's partnership extends 20 years.