Finding the "right" IT org structure has been an ongoing discussion for as long as I have been in this business. Centralized models give the greatest control and provide the best opportunities for cost optimization. Unfortunately one can easily loose close contact with the rest of the business and become isolated and unresponsive. Totally decentralized orgs usually are highly responsive to local business needs but are horrendously inefficient. What one generally sees is decentralization during times of prosperity and centralization when the money gets tight. Thus the swings back and forth between structures as one goes through the business cycle. Either model can successful and either model can be a failure. Obviously Follett is looking to control costs and moving back towards a centralized (perhaps a hybrid).
Outsourcing is designed to bring in a higher technical programming skills.