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United States : Firms downplay local impact of canceled IBM contract.


Byline: Mamta03

Companies in Anderson and Daleville that expanded two years ago when IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries)  won a contract to privatize pri·va·tize  
tr.v. pri·va·tized, pri·va·tiz·ing, pri·va·tiz·es
To change (an industry or business, for example) from governmental or public ownership or control to private enterprise: "The strike ...
 Indiana s Indiana, state, United States
Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W).
 welfare system downplayed local effects after the state canceled the deal.

An IBM call center in Daleville and an Affiliated Computer Services Affiliated Computer Services (ACS) (NYSE: ACS) is a Fortune 500 company that provides information technology outsourcing as well as business process outsourcing solutions to businesses, government agencies, and non-profit organizations.  facility at the Flagship Enterprise Park had expanded as part of an IBM pledge to create 1,000 jobs in exchange for getting a $1.34 billion contract to handle welfare applications and provide other services for the Family and Social Services social services
Noun, pl

welfare services provided by local authorities or a state agency for people with particular social needs

social services nplservicios mpl sociales 
 Administration.

There s no impact and it s business as usual, Affiliated spokesman Ken Ericson said. He said no work done at the Anderson office was related to the welfare contract. He declined for proprietary reasons to discuss clients served by the company s local office.

Similarly, IBM spokesman John Buscemi said, The Daleville call center does not handle FSSA FSSA Family and Social Services Administration (Indiana)
FSSA Financial System Stability Assessment (World Bank)
FSSA Family Subsistence Supplemental Allowance
 work. Asked whether the cancellation of the contract would have an impact on workers in Daleville, he said, I have no information on that.

Neither Ericson nor Buscemi would provide employment figures for the Anderson ACS (Asynchronous Communications Server) See network access server.  facility nor the Daleville IBM center. However, both firms announced the addition of hundreds of jobs amid fanfare at or around the time IBM was awarded the state welfare contract.

Indiana Gov. Mitch Daniels Mitchell Elias "Mitch" Daniels, Jr. (born April 7, 1949 in Monongahela, Pennsylvania) is the current Governor of the U.S. state of Indiana. A Republican, he began his four-year term as Indiana's 49th Governor on January 10, 2005.  announced on Thursday that he was canceling IBM s contract because he said the company had not followed through on promised improvements. Problems included lost documents, delays in benefit approval and poor service.

IBM s contract included automating applications for food stamps, Medicaid and other welfare benefits.

Buscemi said IBM had improved the system, which he said Daniels had criticized as the nation s worst when he took office. The IBM spokesman said the recession had led to an unanticipated spike in applications, and that other unforeseen problems had beset the ambitious project.

IBM rejects the state s claim and believes state s action is unjustified, he said. We ve significantly improved the Indiana welfare agency.

In a press release that announced 200 jobs being added at Anderson s Affiliated Computer Services in September 2007, Daniels said, This fulfills the commitment made by IBM last year that the company and its partners would create 1,000 jobs for Hoosiers if selected to help us fix the state s welfare system.

Copyright : Euclid Infotech Pvt. Ltd.

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Publication:TendersInfo
Date:Oct 20, 2009
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