(By Balachander) General Motors Co. (NYSE: GM) announced an agreement to shift 3,000 Hewlett-Packard Co. (NYSE: HPQ) workers to its payroll as part of a move to transform its internal information technology operations.
The companies also announced new multi-year project services and software contracts to accelerate GM's ongoing IT transformation efforts.
"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," commented GM Chief Information Officer Randy Mott.
The agreements provide GM a "cost-neutral" solution in which 3,000 HP employees already working on GM's business will transition to the auto company's employment rolls, GM said.
In addition, GM has purchased HP's IT Performance and Enterprise Security suites, and Vertica and Autonomy software.
GM also said is moving from a highly out-sourced to a largely in-sourced business model, changing the mix so more employees are focused on innovation rather than operations.
As part of the transformation efforts, GM has announced new IT innovation centers in Austin, Texas, and Warren, Mich., with the locations of two more centers yet to be announced.
GM shares rose 1.84 percent to trade at $25.53, and HPQ shares added 0.34 percent to trade at $14.77 on Thursday.