By Jeff McKinney
The Cincinnati Enquirer

Fifth Third Bancorp plans to shift about 80 jobs next month from its information-technology operations to Pomeroy IT Solutions Inc. as part of a new outsourcing deal with the Hebron-based computer services firm.

The parent of Fifth Third Bank also is exploring offshoring opportunities for its IT unit with vendors from India to help cut costs but says any such deals would not cause job cuts at the bank.

Greg Carmichael, executive vice president and chief information officer at Fifth Third, said Wednesday that Fifth Third employees will be offered full-time positions at Pomeroy effective July 2 with the same pay they now receive. He said the bank also will protect their severance package for 18 to 24 months. .

P.J. Thelen, regional vice president at Pomeroy, said the company will guarantee the Fifth Third workers' pay for six months and employment for 18 months.

He said Pomeroy would like to retain the Cincinnati bank's employees long term to handle Fifth Third business and other Pomeroy clients.

The workers will be rolled into Pomeroy's unit that provides help desk and maintenance services to companies ranging from small businesses to Fortune 500 companies.

He said Pomeroy, which employs about 1,400 people nationally and 350 locally, said Fifth Third workers will basically perform the same job duties and will have the opportunity to expand their skills to other technologies.

Financial terms of the contract, which is for five years, were not disclosed.

Carmichael said the 80 jobs are being outsourced to Pomeroy to enhance service in its desktop support operations, cut costs and provide the employees better career opportunities with an IT firm than they could have received at the bank.

"We looked long and hard at this, and this will be a great program for Fifth Third, the employees and Pomeroy," he said.

But he said Fifth Third is still committed to its IT operations, which are rapidly growing and now employ about 1,100 people, most of whom are in Cincinnati. That is up from 400 people in 2000.

The IT unit of the $94 billion asset banking giant supports all of its computer operations, including systems that process loans; runs its Internet banking unit; and offers computer support for its nearly 1,000 branches in eight states.

Carmichael, who flew to India a month ago to explore offshoring possibilities, said Fifth Third would look at such options for its IT unit if an overseas partnership made business sense.

He said the bank's IT unit spends millions of dollars in consulting services with outside vendors and would consider replacing that work with India-based vendors to help cut costs.

"It's those dollars, not jobs, that I would entertain leveraging to a third-party offshore firm," he said.

E-mail jmckinney@enquirer.comn