Civic News

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

Before you go...

Please consider supporting Technical.ly to keep our independent journalism strong. Unlike most business-focused media outlets, we don’t have a paywall. Instead, we count on your personal and organizational support.

3 ways to support our work:
  • Contribute to the Journalism Fund. Charitable giving ensures our information remains free and accessible for residents to discover workforce programs and entrepreneurship pathways. This includes philanthropic grants and individual tax-deductible donations from readers like you.
  • Use our Preferred Partners. Our directory of vetted providers offers high-quality recommendations for services our readers need, and each referral supports our journalism.
  • Use our services. If you need entrepreneurs and tech leaders to buy your services, are seeking technologists to hire or want more professionals to know about your ecosystem, Technical.ly has the biggest and most engaged audience in the mid-Atlantic. We help companies tell their stories and answer big questions to meet and serve our community.
The journalism fund Preferred partners Our services
Engagement

Join our growing Slack community

Join 5,000 tech professionals and entrepreneurs in our community Slack today!

Trending

Not all jobs are the same. Why do workforce agencies treat them like they are?

After nearly a decade, the federal program for immigrant entrepreneurs is finally working

Block the bots or feed them facts? How Technical.ly uses AI in journalism

Philly officials raise the alarm about AI fakes ahead of Election Day

Technically Media