GM believes ‘incurring is more effective than outsourcing. Outsourcing has led to too any applications that are redundant, bulky technology systems that slow innovation, and feels that they can afford to run their own data centers” (Boney, 2012, Para. 6-16). GM also feels that its IT contractors that are outsourced do not understand the auto industry; therefore GM believes they can hire their own IT staff within the United States that can give results for the auto industry to GM standards. Rationale for GM is that they believe that by incurring its 23 outsourced data enters to 2 data centers inside Michigan, they will save cost by 40%, plus consolidate all their data into one location.
The challenge to save money comes from three change accelerators – bandwidth, processing power, and storage. “The data the car produces also goes to the car maker so they can track customer satisfaction and vehicle performance, enabling them to make better vehicles in the future. In fact, the car maker can learn what’s happening with the cars in real time, which enhances their ability to continuously innovate” (Burrs, 2013, Para. Even).
Considering Gem’s creation of valuable big data and high speed data analytics, any move to save money regarding their big data and to keep it in-house for analysis would be beneficial. References: Boney, Nathan.
Retrieved from: http://fighting. Com/flash-foresight/GM-is-incurring-its-data-centers- what’s-your-plan-to-leverage-high-value-data Sheep, David. (2012, July 9th). GM vows to ‘insecure’ most of its IT Jobs: Beginning of a trend? Retrieved from: http:// jobs. AOL. Com/a articles/2012/07/09/GM-vows-to-insecure- most-of- its- it-Jobs- beginning- of-a-trend/ Deathbeds, Patrick. (2012, September 24). GM ‘insures’, sets to hire 10,000 IT pros. Retrieved from: http://www. Computerized. Com/s/article/9231 519/ GM _I unsound recess I re_l Ross