Hertz, a well known car hire company, has finally decided to move towards outsourcing. The rumors were circling around for quite some months and now the final decision is going to be made soon. Hertz has warned a total of 230 IT professionals that their jobs are at risk, as the company is opting IBM as its outsourcing partners.
All of these IT professionals work in Oklahoma City where Hertz technology centre is located. The reason behind this big step is that Hertz is trying to improve its IT operations.
The CFO of Hertz, Tom Kennedy, asked the analysts to cut down the number of employees working for the company. He said:
“We have 1,500 people in the back office, which is quite double what it should be. Our call centers are probably double what they should be,” according to the Seeking Alpha transcript. The firm’s IT spend is over $400 million a year.”
Hertz CEO John Tague said:
“The firm seeks a transformative IT agenda. We expect the number of employees to be larger than 230 for the U.S.”
Outsourcing is just another partnership. IBM has been working with Hertz for 20 years. The spokesperson of IBM has said that some of the Hertz IT experts may get jobs in IBM, but the number will be much shorter than 230.
Review:
Hertz moving towards outsourcing is a huge step. The IT professionals need not to worry because IBM will offer jobs to some of them. This news is a proof that even large companies are moving towards outsourcing.
Source: Computer World
Hertz Moving Towards Outsourcing
