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GM Outsourcing $15 Billion In IT Jobs

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As if GM doesn't have a bad enough rap as it is, they have now kicked the American worker again. They are planning on outsourcing $15 billion in IT work.

I personally will never buy GM again. They have crappy products and my sister has had horror stories over the years. I did have a Ford Escort that lasted about 14 years with virtually no issues. Out of all the US companies I'd pick a Ford car over GM any day.

Just another example of the attack on decent paying jobs here in the US.

Fox News

General Motors Corp. (GM) said on Thursday it would outsource up to $15 billion of information technology work as it tries to cut costs and restructure operations.


GM declined to disclose how much the automaker, which is struggling to cut costs and shed excess capacity, would save through the outsourcing of information technology work.

"There will be savings for GM as a result of increased efficiencies gained through this process," Ralph Szygenda, chief information officer at GM, said on a conference call.

He said GM had not made its awards on the basis of projected savings alone, although cost cutting remains a key priority for Chief Executive Rick Wagoner.

"The winners today (won) because they had the best capability," said Szygenda, who joined GM at the time of the EDS spinoff. "We didn't let the lowest cost drive us. We didn't let payment terms drive us."

They claim they'll save money through "efficiency" of outsourcing. Now I don't know about you, but taking your business overseas to foreign companies has been shown over and over again to not be efficient. Why don't they just come out and say it is because they can pay people over there slave wages and stop the charade of trying to look like they're streamlining their operations.

It's just the "crappy jobs no one wants" that are going overseas right? Tell that to all the people who would have made a livable wage off of these contracts here in the US that have been undercut through this.

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Posted by Digger on February 15, 2006 05:41 AM (Permalink)

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I agree it sucks but it looks like they spread it around. HP, IBM, EDS are all in the USA. or am I missing something. The France and India may be oversees facilities.

Posted by: Doc on February 15, 2006 02:28 PM

check outsourcing story at

Posted by: herbat73 on December 6, 2007 11:51 AM

Although there is more to outsourcing, tougher immigration policy is a significant factor that forces companies to outsource jobs. By allowing immigration, the issue of shortage of skilled workers can be addressed and outsourcing can be balanced.

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