Diebold terminates IT outsourcing deal

Diebold terminates IT outsourcing deal

ATM manufacturer Diebold is to terminate an IT outsourcing deal with Deloitte Consulting as part of an overhaul of its global technology operation.

The previous agreement, developed nearly four years ago, called for DC Outsourcing to deliver various IT-related services to Diebold over a seven-year period, including deployment and implementation of the Oracle ERP system across the company. As a result of the termination, eighty former Diebold employees will be repatriated from DC Outsourcing.

The firm will also incur a restructuring charge of $0.07 per share in the second quarter.

In a statement, the firm says: "This decision is designed to provide the company with more control and flexibility over its IT operations as well as the ability to accelerate its remaining ERP deployment."

In February, Diebold announced plans to shake up its global information technology and business transformation operation after reporting a 76% decline in fourth quarter earnings.

Thomas Swidarski, Diebold president and chief executive officer, comments: "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."

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