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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.

Companies: Carnegie Mellon University / IBM

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