Georgia Outsourcing Government IT

[OhioChick]

Posted by Ann All on December 12, 2007 at 6:39 pm

Georgia Gov. Sonny Perdue blasted his state’s performance in announcing his decision to consolidate the 11 agencies that account for the bulk of the state’s tech spending, creating a Georgia Technology Authority that will evaluate bids from private contractors to provide IT services.

“I believe we need to stop paying for what I have determined to be inefficient and ineffective technology,” says Perdue in an ajc.com story.

Together, the 11 agencies spend some $617 million annually on IT.

The move will affect 1,100 state jobs. The director of the technology authority tells ajc.com that about 500 of the workers will transfer to the companies selected to provide services. Some 200 employees will be laid off, while many of the remaining workers are eligible for retirement.

Perdue killed a similar proposal by his predecessor, Roy Barnes, that would have consolidated all of the state’s telecommunications services and moved the work to private contractors. Unlike Perdue’s plan, the $1.8 billion deal would have awarded a contract to a single vendor rather than multiple companies. Perdue described Barnes’ proposal as “a solution looking for a problem.”

Perdue says the bidding process may include offshore firms, a rare occurrence in public sector outsourcing. Perhaps one of the bidders will be India’s Wipro, which is close to announcing the location for a planned software development facility in metro Atlanta that is expected to employ up to 1,000 people.

Research firm Input earlier this year predicted that cost pressures and large numbers of retiring workers would lead more state and local government agencies to consider outsourcing. That market will reach $20 billion in 2011, up from about $12 billion in 2006, says Input.

http://www.itbusinessedge.com/blogs/sts/?p=271

[terisan]

1. The parts of State of Georgia IT I observed has been a disasterous money-sink for over a decades.

They would spend massive amounts of federal dollars and produce nothing or stuff worse than useless. A lot of money always just disappeared. The contractors are usually just as bad. Possibly this move is designed to head off an enormous scandal.

Makes it easy for foreign companies to move in and take over. Looks like India will also be in charge of educating Georgians. America has fallen apart.

Judging by Perdue's lack of foresight in ensuring a water supply, this may be no improvement. Surprised he is not just praying for technology.

[SharonAnn]

2. As an IT professional, I've observed that those who can't manage in-house IT departments

get into real trouble trying to manage outsourced IT departments. It's even harder.

And, the IT employees get screwed.

However, the vendor they outsourced to makes gobs and gobs of money. Gobs and gobs of it. It doesn't matter if the outsourcing is done by a private organization, Fortune 500 company, a non-profit organization, or a government.

But "privatization" is great for "crony" deals, bribes, etc.

I've been in this business for 40 years, and I've seen lots of huge catastrophes with this.

But the vendor gets really, really rich. And the owners, stockholders, donors, or taxpayers get screwed.

[flashl]

3. Great post.