The state of Pennsylvania will not renew its services contract with IBM regarding the development of a modernized unemployment compensation system, after the project reportedly has gone 42 months behind schedule and US$60 million over budget.
In August, state officials commissioned a study from Carnegie Mellon University’s Software Engineering Institute, seeking “to determine the best course of action moving forward,” according to a statement released this week by Department of Labor and Industry Secretary Julia Hearthway’s office.
“The bottom line is that the problems we’ve identified cannot be solved and we will not renew our contract with IBM,” Hearthway said in the statement. “The level of risk, combined with the critical nature of the system, demands that the Department of Labor & Industry has a system that produces timely decisions reliably and accurately.”
Source: Network World
