NORTH CANTON, Ohio - As part of the Diebold Inc.'s efforts to reorganize its global information technology operation, the company June 1 is assuming implementation and support responsibilities for its Oracle global enterprise-resource planning system and IT-related functions.
According to a news release, Diebold is ending its IT outsourcing agreement with third-party provider DC Outsourcing ITO L.P., an affiliate of Deloitte Consulting LLP. The previous agreement, developed nearly four years ago, called for DC Outsourcing to deliver various IT-related services, including deployment and implementation of the Oracle ERP system, to Diebold over a seven-year period.
By bringing the IT operation in-house, Diebold says it will have the ability to accelerate its remaining ERP deployment.
As a result of ending its IT outsourcing agreement, Diebold will incur a termination fee that will result in a restructuring charge of approximately 7 cents per share in the second quarter of 2006. The strategy also brings approximately 80 IT employees from DC Outsourcing back to Diebold. (Read also, Diebold reorganizes global IT, business transformation; promotes Petit to VP.)
"Regaining direct control of our IT operations and ERP implementation will allow us to expedite the process of realizing the long-term benefits of an enterprise-wide information system," said Thomas W. Swidarski, Diebold's president and chief executive. "This strategic decision is critical to achieving the operational improvement targets we have set as well as positioning us to be more flexible and responsive in meeting the needs of our customers."
