Hertz Signs Agreement with IBM to Support Change in Business Strategy
PARK RIDGE, N.J., 9 May 2008 - Hertz Corporation has expanded its relationship with IBM by signing a five-year contract for global information technology consulting and outsourcing services to support Hertz's overall reengineering and efficiency improvement efforts.
According to Mark Frissora, Chairman and CEO of the Hertz Corporation, "Hertz has been reengineering its business over the past year with the aim of becoming the lowest cost, highest quality, and most customer-focused company in the markets we serve. We continue to select service providers who will enable the Company to drive efficiencies as well as quality and service improvements worldwide."
Under the contract, IBM will expand its services to provide application maintenance and development services and management for the company's auto rental technology systems; support and operations for mid-range hardware and software; and will establish operations for a global help desk for internal Hertz support. IBM will continue to provide the company with application maintenance and development services for its equipment rental and claims management divisions, and will to provide technical support and operations management of the IBM mainframe systems infrastructure.
"Hertz and IBM have a long standing, successful business partnership," added Hertz Senior Vice President and Chief Information Officer, Joseph Eckroth. "By expanding our relationship with IBM to encompass global services, we'll be able to adapt greater efficiencies throughout the organization through IBM's industry standards for development, deployment and service management processes."
Eckroth added, "We chose to extend our agreement with IBM as its industry expertise, global delivery capabilities and secure, energy efficient data centers will enable Hertz to improve IT performance while reducing associated costs. Partnering with IBM enables us to focus on strengthening our core competency of developing innovative solutions for the business while still delivering best-in-class technology services that increase the flexibility of Hertz's information technology environment."
IBM will support Hertz's global technology operations located in Oklahoma City, supporting global applications, including North American and European rental counter systems, global financial systems, and global reservation systems. The agreement also calls for IBM to provide support services through the company's global delivery centers, and will operate out of the Hertz Technology Centers in Oklahoma City.
Bob Zapfel, IBM general manager, IT Delivery said, "We are working closely with Hertz to find new ways to use IBM's technology and industry know-how to strengthen the IT systems that support its business. IBM's strong record of delivery excellence for Hertz has allowed them to reduce operational costs and increase productivity while focusing on their core business and customers."