The Big Blue has found itself in hot water once again when earlier this month, disagreements over the company’s outsourcing contract with US state, Texas, lead to an ultimatum from the state to fix the alleged problems involved in their outsourcing deal. Tech company IBM (NYSE:IBM) is no stranger to outsourcing contract disagreements. If you’ll recall, just a few months ago, another US state, Indiana , filed a lawsuit against IBM for alleged breach of contract by the company to their $1.16 billion deal. IBM in turn filed a counter suit against Indiana for payment owed by the state for the revamp and modernization of Indiana’s “ antiquated and highly inefficient welfare eligibility system ”. In the case of Texas on the other hand, the lawsuit stems from “problems with basic service delivery,” according to Texas CIO Karen Robinson. In a seven page “ notice to cure ” by Robinson, she writes: “IBM promised an investment in people, processes and technology to bring the benefits of data center consolidation to the state of Texas.
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IBM In Hot Water Over Outsourcing Contract With Texas
