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Telecom NZ Takes Back Its SPITTelecom NZ Takes Back Its SPIT

9:30 AM Operator brings service provider IT (SPIT) management back in-house as outsourcing deal with HP ends

January 24, 2011

1 Min Read
Telecom NZ Takes Back Its SPIT

9:30 AM -- Not everyone's so keen on outsourcing… Telecom New Zealand Ltd. (NYSE: NZT; New Zealand: TEL) is looking to hire about 300 IT staff to undertake server management, database management, and application and development tasks as it takes back day-to-day control of some of its Service Provider Information Technology (SPIT) assets, reports The Dominion Post.

The tasks are currently outsourced to HP Inc. (NYSE: HPQ), which inherited the contract when it acquired EDS. (See HP's $13.9B Power Play.)

Telecom NZ is expected to hire a large number of HP staff that have been working on the carrier's back-office systems, according to the report.

What this situation shows is that while outsourcing looks good on paper, there are likely to be situations where operators feel they can be more agile, and have greater influence over important tasks such as applications development, by having certain roles within, rather than outside, their direct control.

— Ray Le Maistre, International Managing Editor, Light Reading

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