“GM’s decision highlights a critical pivot: companies are recognizing that in-house software development can be a costly and complex endeavor,” he added. “Instead of doubling down on internal teams, we’ll see a growing trend toward outsourcing and nearshoring to fill the gaps. This move allows companies to remain agile, reduce overhead, and tap into specialized expertise without the long-term commitment of a large in-house workforce.”
Strategy shift
Ritesh Seth, CEO of HR firm Empathy Employer, which focuses on outsourcing strategies, said GM is busy reevaluating its strategy. “They didn’t want to partner with RIM or Tesla or use their own software. When software is not your core competency, the sense of software culture just isn’t there,” Seth said.
“GM’s recent layoffs in its software and services divisions highlight the challenges traditional automotive manufacturers face as they integrate advanced software capabilities,” Seth said. “This move reflects broader industry pressures and underscores the difficulties in balancing software development with core manufacturing operations.”
