NCR faces outsourcing woes

NCR faces outsourcing woes

NCR's service division is about to lose a significant portion of its most lucrative outsourcing contract, sparking industry rumours it faces serious financial strain.

According to sources within the company, NCR's last big maintenance contract with EDS, for the maintenance of the Commonwealth Bank of Australia's infrastructure, is being renegotiated in favour of NCR's nemesis, Fujitsu.

Previously, the agreement saw EDS contract out around 75 per cent of the maintenance deal to NCR, with Fujitsu's Australian services divison FBA responsible for the remaining 25 per cent.

However, this is set to change, with a source suggesting to ARN the roles will be reversed leaving NCR as the minority contractor.

"In reviewing the contract, EDS has changed the onus so that 70 per cent is now handled by FBA and about 30 per cent by NCR," said the NCR source.

EDS admits to being in negotiations with the two integrators but stresses that both companies will "continue to have an existing relationship with EDS".

Neither NCR or FBA were willing to comment on the discussions currently in progress.

However, the stakes appear to be high for NCR.

"Without the CBA via EDS job, NCR is not left with many other contracts of note," the source said.

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