Outsourcing Times

December 09, 2006

Change Indiana

Another bastion falls. The Indiana Family and Social Services Administration recently announced that it would undergo significant changes under a decision to privatize jobs now performed by state workers. The agency provides Medicaid and welfare services to more than 1 million Hoosiers.

This change is based on a recommendation by a committee that was assigned the task of reviewing the agency. So what exactly was the recommendation? Among others, the committee recommended that FSSA's current intake program should be outsourced, its technology upgraded. The committee also sought to make changes that could help FSSA serve its clients better, save taxpayer money and improve working conditions for overburdened workers.

The contract will most probably be awarded to IBM once federal authorities approve the plan. Privatization will cost FSSA $1.6 billion and will take around 10 years for the process to be completed. This works out to be much cheaper than the $2.1 billion it could cost FSSA to modernize on its own.

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December 9, 2006 in Management | Permalink

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