Indiana Warns IBM to Fix Problems or Lose Contract

A private welfare system that IBM touted as being transformed under its watch apparently hasn't been.

A top Indiana official says the state could cancel its $1.16 billion, 10-year contract with Big Blue this fall unless it rectifies problems constituents have in accessing the system, reports The Associated Press in a story in The Seattle Times. Clients have been frustrated with long waits, lost files, and other difficulties, including slow approvals and severed eligibility for food stamps and Medicaid.

According to the Evansville Courier & Press, IBM and partner Affiliated Computer Services, have been directed to make changes at their own expense to call centers, online operations and in-person services.

The AP story says Texas severed a similar contract in 2007.