Fonterra outsourcing IT at diversity.net.nz

Mega company (by New Zealand standards anyway) Fonterra has just announced that it will be outsourcing some IT functions to India.

Fonterra’s outsourcing strategy is aimed at reducing duplication of backroom support functions such as human resources, information services and finance across its various brands and commodity businesses and will see it use Indian company HCL to run some of its IT systems.

Fonterra exec greg James, expecting the usual New Zealand knee jerk negative reaction sad the following;

“We have always made it clear from the outset that there will be some redundancies and those staff who will be potentially affected have been advised,” said James. “We are still working through the recruitment and redeployment processes with many of our staff and are not in a position to comment on what the final number of redundancies may be.”

Let’s just make a point here - Fonterra is in the dairy business - its core competency and primary focus is the creation, value adding, distribution and marketing of dairy products around the world. Nowhere in that description did I see that Fonterra is an IT company.

Outsourcing IT is a sensible “stick to your knitting” kind of decision.

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