Last week, General Motors announced a new Information Technology Innovation Center in the Atlanta suburbs, one of four planned centers. For the past thirty years, GM has outsourced much of their programming work to countries like India. These new innovation centers represent a shift in strategy where GM plans to do much of the software development work by GM employees in the United States.
The press announcements don't give a reason for this strategy shift. I suspect programming costs in India have risen though still remain well below market rates in the US. But the quality of available talent in the United States coming from the strong computer science programs in this country greatly outweigh the extra expense. Not surprisingly the announcement of the new center took place at Georgia Tech and I suspect that some of our graduates will play a major role in the GM center.