Enterprise

3,000 HP Employees Get A Lifeline From General Motors

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Meg WhitmanGM has agreed to take 3,000 workers off of HP's hands.

It's a move that some are calling "outsourcing in reverse" or "insourcing."

The 3,000 HP employees are people who have already been working for GM.

They're part of HP's beleaguered Enterprise Services unit, which has been hit hard by the tech giant's layoffs. HP is in the process of trimming 29,000 for its workforce, many of them from HP ES.

The 3,000 employees are part of GM's bigger plan to hire 10,000 people as it brings more tech work in-house.  They will be added to the GM payroll over the next six months, reports Businessweek.

Shifting workers from outsourcing contracts to payroll won't affect the bottom line for the automaker, GM said. Its larger plans include what it calls "innovation centers." It already announced two of them, to be located in Warren, Michigan, and Austin, Texas, and it will announce two more, GM said.

GM gave HP some good news—a contract to buy a bunch of HP software including its IT Performance Suite, Enterprise Security Suite, and products from HP's Vertica and Autonomy Software businesses.

The latter two are particularly interesting for GM and HP. Vertica and Autonomy are HP's entries in "big data" and the Autonomy Software has been a particularly troublesome part of HP's history.  Previous CEO Léo Apotheker strained HP's balance sheet when he bought Autonomy for $10.3 billion a little over a year ago.

In May, Whitman told investors that sales of Autonomy were "disappointing" and that former Autonomy CEO Mike Lynch was out the door. Analysts have been bracing for another big writeoff from HP thanks to the Autonomy purchase.

In August, HP wrote down $8 billion of goodwill on its $13.9 billion EDS acquisition. The acquisition of EDS doubled the size of HP and became HP's Enterprises Services outsourcing unit.

And here's where it really comes full circle: GM spun off EDS in 1996.

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.