Posts Tagged ‘Lawmakers’

Lawmakers hold public hearing on state technology outsourcing

September 15th, 2010

West Virginia lawmakers are in town for their monthly interim session. On Tuesday, they held a public hearing on a proposal to outsource work from the state’s Office of Technology.

Members of the union and employees of the West Virginia Office of Technology met in the House Chamber. They were there to speak their mind to legislators about a proposal by Chief Technology Officer Kyle Schafer to outsource about 600 computer programming jobs.

Schafer addressed lawmakers first. He says having technology workers spread throughout several state agencies costs the state about $35 million a year. Schafer says he has three options: doing nothing, addressing the situation internally, or looking to an external company to provide support.

“To be able to assess all those options, we have to have the information,” Schafer said. “We have the information about our internal systems, we don’t have the information about what third party providers can offer. So my proposal is to get an expression of interest out on the street, have people, have vendors respond to our request, and then we’ll have all the information where we can sit down and very succinctly evaluate option one, option two and option three.”

The employees of the Office of Technology who spoke at the hearing worry that it’s already a done deal, pointing to communications Schafer has already had with IBM.

Craig Cotsmire works under the Office of Technology, and he blamed current problems in the department on Schafer.

“I want to state that the CTO I believe has failed his duties by not producing the biannual reports he was mandated to do, for stopping all IT training since 2006, and then blaming the state IT staff for not being up to speed on the new technologies and skill sets that are needed to go into the future,” Cotsmire said. “And using that as an excuse to outsource the IT divisions in the state of West Virginia.”

Cotsmire also said that he feared retaliation for speaking up in the public hearing.

West Virginia Public Workers Union Local 170 has been fighting the outsourcing, and points to dismal results for similar situations in Texas, Indiana and Virginia. The union has sued the Office of Technology and Schafer, trying to block the outsourcing.

Bob Bryant works for the West Virginia Division of Labor. He says his agency is dependent on Office of Technology workers, and he fears privacy breaches under outsourcing and workers who aren’t familiar with all the nuances of West Virginia law.

“One of the biggest problems with outsourcing is you lose the total control of your systems, the knowledgeable personnel that managed those systems and know what is needed to support your business processes, infrastructure and software. Once it is gone, it is very hard to get back,” Bryant said.

Legislators listened to the ten speakers, and then asked Schafer a few questions. Delegate Randy Swartzmiller (D-Hancock) made a motion.

“Basically what I’m just asking for is that we bring in somebody from the outside to conduct an independent audit on the Office of Technology of exactly what they’re proposing, what they’re trying to accomplish and to try to look at what the fallout, if any, is going to be at the end of the day,” he said. “We want to make sure that the taxpayers are getting the biggest bang for their buck, and at the same time, we want to make sure that we know what’s going to happen with the employees that are down there working now and are doing a tremendous job.”

Swartzmiller’s motion passed, so the Committees on Economic Development and Technology will request funding from the Committee on Government and Finance to pay for an independent audit.

Source:http://www.wvpubcast.org/newsarticle.aspx?id=16675

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Lawmakers want audit of IT outsourcing plan

September 15th, 2010

Members of two legislative interim committees Tuesday called for an independent audit of the state Office of Technology regarding its plans to outsource state information technology jobs.

Delegate Randy Swartzmiller, D-Hancock, made the motion following an hour-long public hearing before the joint committees on Technology and Economic Development — where IT employees vented their concerns over the possible outsourcing of their jobs.

Swartzmiller called on the auditors to study similar attempts to outsource IT operations in other states. He also called for the audit to determine what information the Office of Technology has provided to companies that could be potential bidders for the outsourcing of state IT operations.

“There’s just too many unanswered questions out there,” Swartzmiller said of his request for the audit.

After the meeting, he told state Chief Technology Officer Kyle Schafer, “This isn’t personal. I’m not taking sides. I just want to get information.”

Schafer said he supports an independent audit, saying he believes it will reach the same conclusions about the state’s IT operations that he has.

Earlier, Schafer reiterated to the committees that his office is preparing to seek expressions of interest from private vendors merely to get a better idea of whether outsourcing is a viable option.

“We’ve never made a proposal to outsource anything. We’ve never made a proposal to go with a particular vendor,” he said.

Delegate Nancy Guthrie, D-Kanawha, questioned why IBM officials were recently touring the South Charleston Technology Park. Schafer confirmed in June that IBM has been conducting a “voluntary” review of all state data centers and IT operations.

“I have had no discussions over the tech center whatsoever,” Schafer said. “I do know they went down to the tech center with [Higher Education Policy Commission Chancellor] Brian Noland.”

During the public hearing in House chambers Tuesday, IT employees reiterated concerns over possible outsourcing of their jobs, including citing hugely expensive IT outsourcing failures by state governments in Virginia and Texas.

They also raised privacy concerns if a private vendor has access to data stored by agencies such as Health and Human Resources, the Division of Motor Vehicles, and the Tax Division.

“One problem is that West Virginians’ private information could end up being stored or accessed in a foreign country,” said Bob Bryant, an IT employee in the Division of Labor. “One of the biggest problems with outsourcing is that you lose control over your own [computer] systems.”

Also during legislative interim committee meetings Tuesday, a legislative audit of Purchasing Card expenditures by the Division of Highways found numerous “unnecessary and/or extravagant purchases.”

That includes $8,830 of clothing purchases, including 162 polo shirts, 17 Ping brand golf shirts, 24 hats and five jackets; as well as $5,022 in luggage purchases for 457 portfolio bags and briefcases distributed at conferences.

The audit was based on allegations that executive assistant Chuck Runyon was making unusual P-Card purchases.

While the authorization for many of the questionable transactions came back as “unknown,” the audit did find an invoice for $100.98 for two monogrammed shirts billed on Runyon’s P-Card and shipped to his home address.

In a response to auditors, Runyon said he had ordered the shirts for his personal use, and had given the vendor his personal credit card information for payment.

He said that “for some unknown reason” the vendor subsequently called DOH’s Office Services Division, and the director switched the billing to his P-Card account.

Source:http://wvgazette.com/News/201009141134

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Lawmakers keep asking about outsourcing of 600 state IT jobs

August 10th, 2010

Legislators Monday continued to grill state Chief Technology Officer Kyle Schafer about prospects for outsourcing nearly 600 state information technology jobs — and Schafer continued to stress that discussions are extremely preliminary.

Schafer told the legislative Joint Committee on Technology that outsourcing is just one option to reduce the state’s $35 million annual cost to operate various IT services for state agencies.

He said the state Office of Technology is also looking at an internal centralization of some 13 separate state IT offices.

“We’re doing an assessment of what we think the estimated savings will be,” he said. “If it would be more cost-effective to centralize, we’ll make that recommendation.”

Schafer confirmed that in June that IBM is reviewing all of the state’s data centers and IT applications, a study that had sparked rumors among IT staffers regarding the possible outsourcing of their jobs.

Last month, about 75 Office of Technology employees rallied outside of their Capitol complex offices to protest any outsourcing plans.

“This whole movement you’re undertaking, I know, is making a whole lot of people nervous,” Delegate Nancy Guthrie, D-Kanawha, told Schafer.
Schafer said the Manchin administration’s policy has been consistent when it comes to any consolidation of state services.

“There’s not been any single layoff of any employee with any consolidation we’ve done,” he said. “This is an economic development and jobs creation initiative, not a jobs elimination initiative.”

If the state decides to outsource the IT jobs, it will be to bring more private-sector jobs to the state, he said.

“The question is, can we leverage that managed service to attract other jobs to West Virginia?” Schafer said.

He had previously told legislators that if the IT jobs are outsourced, state employees probably wouldn’t be laid off, because the winning vendor would be required to “rebadge” state employees as their own.

Office of Technology employees have protested that their benefits as state employees would not transfer to their new private-sector positions.

Guthrie noted that other states have not had success outsourcing their IT operations, citing problems with outsourcing by the states of Virginia and Texas, among other states.

“There are four different lawsuits in four different jurisdictions saying this is a bad idea to outsource,” she said.

Schafer said that, while those states have “some service issues they’re working on,” there have been more successes than failures among states outsourcing their IT operations.

Guthrie also complained that legislators are not being kept fully apprised of the status of the IT transition.

“It’s like so much of state government anymore. It’s all in your head,” she said.

Also Monday, Ken Arndt, southeast region president for Frontier Communications, said the state landline phone service provider will soon have a statewide fiber-optic network in place, connecting assets from the company’s previous operations in the state with those acquired from Verizon as part of a 14-state, $8.6 billion acquisition, effective on July 1.

He said Frontier will be able to provide new high-speed Internet connections to 50,000 households in 190 locations around the state within 180 days, and to reach a total of 100,000 new households by 2011.

“We will take West Virginia, which is the 47th least-wired state in the United States, to the top five in five years,” he told lawmakers.

Source:http://sundaygazettemail.com/News/201008090718

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