April 24, 2014

Elyria
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Invacare plans to outsource IT department

ELYRIA — Invacare Corp. is again shaking things up when it comes to its employees.

The medical products manufacturer is reorganizing and outsourcing its information technology division to a Japanese company that has several offices in the United States. The in-house IT department of 24 employees will, over the course of the next few months, be dissolved, said company spokeswoman Lara Mahoney.

Employees will have the opportunity to interview with NTT Data and either secure a position through the Japanese company onsite at Invacare or at other NTT Data locations. Those not hired by NTT Data will be laid off, given severance packages and access to employment services, Mahoney said.

“It is my understanding that a majority will receive positions with NTT — onsite or elsewhere,” she said. “They will also be offered a position at the same salary scale.”

The IT services to be outsourced are those dealing with associates and not customers with questions about Invacare products.

Invacare has had a long-standing relationship with NTT Data, with some of the company’s employees already working on the Elyria campus. The benefits include access to state-of-the-art IT expertise at a lower cost.

“This completely expands our horizons and accessibility to technology,” Mahoney said.

The company is continuing to take steps to strengthen itself since entering into a consent decree with the U.S. Food and Drug Administration. Under the agreement, Invacare agreed to undergo three third-party audits to be submitted to the FDA. Two have been filed and accepted by the FDA. A third continues.

The company announced in December that it would take several additional months to work through the last audit. The auditor identified problems with the way Invacare handled customer complaints that resulted in a backlog of resolving the complaints.

“We have an action plan in place, and we are committed to working through it,” Mahoney said.

According to a release last month, the updated plan now requires the funneling of all complaints through one system. Initially, there were more complaints to handle through the new system than the ability of Invacare employees. But the company trained associates to thoroughly address complaints, according to Mahoney.

Contact Lisa Roberson at 329-7121 or lroberson@chroniclet.com. Follow her on Twitter @LisaRobersonCT.

  • Terd

    “It is my understanding that a majority will receive positions with NTT — onsite or elsewhere,”

    That last word is 98% of the statement. If they were all to just roll over to NTT what’s the point? To pay their employees less?

    A very thin veil to disguise the lack of leadership brought forth.

    Outsourcing only decreases overall moral and loss of trust with the employee’s. Should the outsourcing fail, Good luck acquiring new talent.

  • thestingisthetruth

    This only means they had little confidence in their current capabilities, usually lacking management skills. Currently most IT managers know about punch cards and less about SANs and LANs. This is only a phase and the boomers will need to retire as their skills are no longer needed.

  • Razorback Twou

    Last one in the bowl pull the handle.

  • justin

    this company has and always will be a joke…. I don’t understand how anyone could want to work for this crap hole

  • Ken Tague

    big mistake! on site means your data belongs to you and your people look out for you, contractors just want money, no loyalty or personal investment in your intrests.

    • Mike Litoris

      Sadly, they won’t learn this until something comes up… perhaps something litigious.