Diebold, a provider of ATMs, E-voting technology, and security systems announced last week that they will take work it outsourced to Deloitte back in-house.Diebold needed to have direct control of its IT operations for flexibility and to speed up the ERP project so it could quickly get benefits from a companywide information system, CEO Thomas Swidarski said in a statement. "This strategic decision is critical to achieving the operational improvement targets we have set," he said.

It is taking over implementation and support for an Oracle global ERP system and some additional IT functions as of June 1. It will pay about $7 million--7 cents a share--to end a seven-year contract with Deloitte three years early.

Deloitte Consulting released a study last spring concluding that 70% of large companies had negative experiences with outsourcing and 25% had brought outsourcing projects back in-house.

Source: 1

Prashanth Rai