Alltel Corp. will not replace John E. Steuri, who retired May 31 as chairman and chief executive of its outsourcing unit.
That means less oversight for the five fiefdoms within Alltel Information Services Inc. that serve the banking, health care, and telecommunications industries, according to an an executive at the parent company.
When Mr. Steuri announced his intentions in January, Alltel Corp. planned to seek a replacement. But as he became less and less involved with the daily operations the Little Rock-based parent changed its mind, according to executive vice president Thomas Orsini. "It was an evolution. He had done a good job at putting a management team in place. And we decided to stick with it."
With Mr. Steuri's departure, Alltel Information Services' highest ranking executive is chief operating officer William L. Cravens.
Reporting to him are the five group presidents: Collins Andrews, domestic banking; James Milligan, mortgage servicing; Steven Bova, global banking; Michael Montgomery, health care; and Thomas Case, telecommunications.
Mr. Andrews is also president of the financial group, which encompasses domestic and global banking.
Analysts said the management moves come at a tough time for Alltel Information Services, which ranks as one of the top five bank outsourcers.
The company's revenues rose only 7.4% in 1995. The average for bank outsourcers last year was 29%, according to M. Arthur Gillis, an independent consultant who follows the sector.
Some analysts believe the decision not to replace Mr. Steuri indicates that Alltel Corp. wants more of a say in the direction of the subsidiary. In the past, the unit's daily operations had been managed at arms' length.
"If you're going to operate it as a division, there is no need to replace him with another chief executive," said an analyst who covers Alltel.
Mr. Orsini said that while Alltel Information Services will continue to operate autonomously, the parent company will become more involved in efforts to expand the unit's scope.
"We are making attempts to cross-leverage their skills across our organization."