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Businesses IBM The Almighty Buck Technology

Pennsylvania Sues IBM Over Jobless Claims System Upgrade (cnet.com) 60

Pennsylvania has sued IBM for $170 million, claiming the company failed to deliver a promised upgrade to its outdated system of processing unemployment claims. From a report: IBM did not immediately respond to a request for comment but a company representative told the Associated Press the suit had no merit and the company would fight it. The suit stems from a 2006 fixed-price contract awarded to IBM for $109.9 million with a completion date of February 2010, the state said in a press release. As delays and costs mounted, the state let the contract lapse in 2013 when an independent assessment determined the project had a high risk of failure.
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Pennsylvania Sues IBM Over Jobless Claims System Upgrade

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  • Outdated?? What!? (Score:5, Interesting)

    by Anonymous Coward on Friday March 10, 2017 @02:27PM (#54014447)

    My wife lost her job in 2009 and filed for unemployment in PA... online.. in 5 minutes... and she had a debit card in the mail the following day with money already on it.

    What the fuck, exactly, is so outdated about that?

    • What the fuck, exactly, is so outdated about that?

      Maybe it means that the system is written in Java instead of C#, Oracle and Microsoft salespeople aren't getting big license commissions, and the CTO isn't getting an enormous kickback.

      • Heh. I once worked at a place where a project manager thought (correctly) that IBM was doing a poor job as systems integrator, so he brought in Oracle instead. They shipped in their busload of IROCs (idiots right outta college) and things got worse and worse until finally the project was ended and declared a success by senior management.

    • I built a new system once because the old one was on a minicomputer that HP had pulled support on and they were running out of old machines to cannibalize for parts.
    • by gtall ( 79522 )

      Well Golly, if you wife was able to do that, all the other people using that system must have had the same experience.

  • by HangingChad ( 677530 ) on Friday March 10, 2017 @02:27PM (#54014455) Homepage
    After working with them on Navy projects saying "IBM" and "failed to deliver" is pretty redundant.
  • by chispito ( 1870390 ) on Friday March 10, 2017 @02:30PM (#54014471)
    The headline is kind of rough. I first parsed it out as "System upgrade claims that Pennsylvania sues IBM over jobless."
  • by jediborg ( 4808835 ) on Friday March 10, 2017 @02:31PM (#54014477)
    I have only used 2 IBM products in a professional setting, one of which was ClearCase (the other I forget) In both cases the tech was horribly out-of-date. Seemed like it was programmed in the 1980's, i originally assumed both software packages where free. Then i found out the company actually pays HUDGE contract money out to IBM to support these products that haven't been updated (from my perspective) in over ten years. Turns out the company keeps paying IBM because of vendor-lock-in, their data is basically held hostage because IBM refuses to program ways to migrate it out of the IBM proprietary format.

    totally anecdotal, but i was told by a senior engineer that "IBM doesn't make software anymore, they just keep taking payments from these gigantic legacy contracts, occasionally fooling a new company into signing up based on the name recognition of IBM"
    • ClearCase started out as Rational products that got bought by IBM. Rational products just suck in both concept and implementation. IBM just snaps up companies and then screw over the developers until they leave or RA'd. Then they sell it off to companies like HCL because they didn't know what to do with the products they acquired.
  • by Anonymous Coward

    If it did, how could I.B.M. overcharge them out the wazoo?

  • NEVER (Score:5, Insightful)

    by sexconker ( 1179573 ) on Friday March 10, 2017 @02:33PM (#54014507)

    Never use IBM or Oracle.

    On time. On budget. Functional. Pick zero.

  • The consultants made out like bandits.
    • by Anonymous Coward

      The consultants made out like bandits.

      Slightly longer version: the lawyers noticed the consultants making out like bandits and wanted their cut.

  • by bill_mcgonigle ( 4333 ) * on Friday March 10, 2017 @02:44PM (#54014569) Homepage Journal

    Who authorized the payment in full on a project that wasn't delivered? Why are they trying to claw back money that should never have been payed? Were the people responsible for contracts stupid or corrupt? In either case, what happened to them?

    • Government often doesn't have the option (legally) to withhold payment. That you can't see the reasons why it's like that shows you aren't informed enough to comment.

    • by plopez ( 54068 )

      1) probably the Governor as part of his streamline the government "do more with less" philosophy. (Ignoring the fact that that is a violation of the laws of Thermodynamics)

      2) Because they realized they got screwed.

      3) Hard to tell. Or just following the legislation directing the project to be done.

      4) Probably brushed up their resumes and left if they were smart. Or possibly became consultants helping to keep the crap going with bubble gum and bailing wire.

  • I probably need to see the specs, but I really can't imagine what they would be doing that would cost $100M for processing unemployment claims for a state. It's just not that complicated of a problem.

    • by plopez ( 54068 )

      Here are a few basic rules I know of which can come into play *in my jurisdiction* (the rules vary by state)
      1) you get unemployment. But not if you quit. Or you get injured, workman's comp and medicare usually cover that unless under special circumstances. You must be registered and actively looking for work.

      2) You cannot file for unemployment until two weeks after you get laid off. If you get severance pay you have to wait to use all that up first then you can file. Though you can register for training cou

  • Pennsylvania sues IBM as Indiana sued it in 2009. I am still amazed how IBM can still milk the giant cow that is state government. I guess too many politicians, in Pennsylvania as in Indiana during the Mitch governorship, are so old that they can remember the days back before 1990, when IBM was the computer company.
    • Re: (Score:2, Interesting)

      They're all just as bad; IBM, Oracle, Accenture, Deloitte, HP. It's almost irrelevant which one you pick, so punishing one simply forwards the next contract on to the other, who will do just the same thing.

      Up here in British Columbia, the Provincial government for decades had a pretty effective in-house IT team, but in seeking savings the government has steadily in-house expertise in favor of private contractors. While not all the contractors I've seen are inept, when it comes to rolling out the big systems

    • by quetwo ( 1203948 )

      Michigan sued IBM over their Secretary of State (DMV) system in 2015. They actually went with milestone payments, but IBM refused to release to source code of the last signed-off milestone . The state still hasn't rolled out the new system yet.

  • by Anonymous Coward on Friday March 10, 2017 @03:03PM (#54014703)

    Kind of ironic that a company known for firing North American workers and replacing them with Indians is working on an unemployment project. On second thought, they are masters of making people unemployed.

  • The tip off to the state was when the punch cards started wearing out and the mechanical crank handle broke.
  • Other things aside, I'd bet they contributed to the problem in more ways than one.

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