Ohio-based NCR has signed a five year deal to outsource its ATM manufacturing operations in the Americas to California-based Solectron. Financial terms of the agreement were not disclosed.
Under the deal NCR will transfer its Americas manufacturing operations to Solectron's sites in Columbia, Mexico and Brazil by the end of the year.
Commenting on the move, Bruce Langos, NCR SVP of global operations, says: "This strategy will play a key role in helping us improve our longer-term operating margin."
Solectron has been producing and assembling Teradata data warehouse servers as well as providing systems integration for NCR's Teradata Division for seven years.
Langos says expanding the relationship with Solectron supports NCR's ability to remain competitive, build a sustainable cost structure and free up capital to invest in new product innovation.
The outsourcing deal is part of a restructuring of NCR's global manufacturing operations. Earlier this month the vendor cut 650 jobs at its ATM manufacturing facility in Dundee, Scotland and said its manufacturing facilities in Budapest, Beijing and India would supply ATMs to customers in the EMEA and Asia Pacific regions going forward.
NCR has also disclosed plans to split its business into two separate companies by spinning off of its Teradata data warehousing unit to shareholders