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Aug. 6, 2013 10:00 am

Pa. ends $170m IBM contract to upgrade unemployment comp system

The announcement comes after a Carnegie Mellon study reported that the system that IBM developed was "unsolvable," according to Information Week.

Photo from workerslawwatch.com

Pennsylvania’s Department of Labor and Industry ended a $107 million contract with IBM to upgrade its unemployment compensation system after it ran $60 million over budget and 42 months behind, the Philadelphia Daily News reported.

The announcement comes after a Carnegie Mellon study reported that the system that IBM developed was “unsolvable,” according to Information Week. The state has spent $153 million on the contract, which was started in 2006 under former Gov. Ed Rendell, Information Week reported.

What went wrong? The Carnegie Mellon study pointed to leadership problems on both sides: IBM and the state.

Read the whole Daily News story here and read more on Information Week here.

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Juliana Reyes

Juliana Reyes began as lead reporter at Technical.ly Philly in July 2012. Previously, she was a city services beat reporter for the Philadelphia Daily News, as part of a project called “It’s Our Money.” She is learning to drive, learning to bike (in the city) but is an expert at taking SEPTA. She grew up in North Jersey and Manila, Philippines but she left the tropics for Bryn Mawr College, where she majored in linguistics. She now lives in West Philly.

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