IT insourcing earns GM praise, but no trend expected

By Tom Henderson

General Motors Co.'s plan to move most of its outsourced IT work back in house is being praised by many, but it's being viewed as a course correction for GM rather than a trend. Toni Somers, a professor of information systems management at Wayne State University’s School of Business Administration, said that if the GM move isn't part of a trend, it should be. "I'm not a proponent of outsourcing. A lot of companies jumped on outsourcing. It was the thing to do, and they outsourced IT and R&D," Somers said. "I hope to see more companies moving their IT back in-house, and I'd like to see them bring their R&D back, too. When you have a small company and small IT staffs, it makes more sense to outsource some of it. But big companies are better served by bringing IT in-house. It allows them to control important corporate data and improve operations and innovation. But this move by GM doesn't come without risks, and it comes with high investment costs." 


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