Monday, October 10, 2005

Senator Questions Texas HHSC Outsourcing Contracts :

Senator Gonzalo Barrientos from the State of Texas has called for a review of all the proposed as well as previous Texas Health and Human Services Commission (HHSC) outsourcing contracts.

Senator Gonzalo Barrientos of Austin, Texas has raised questions over the outsourcing contract granted by HHSC to Convergys, a Cincinnati-based HR and payroll management outsourcing solutions provider, in order to save around USD 21.7 million to the state exchequer. In a letter to the State government, the Senator pointed to a report by state’s auditor, which claims that none of the stipulated savings were made through the deal in the first year contract.
The cited audit report further states that the Commission's decision to outsource its HR and payroll services was based on incorrect cost data.
Convergys undertook the HR and payroll management function of HHSC last year under a five-year USD 85 million contract deal. The deal services records of 46,000 Texan government employees. In a response an HHSC spokesperson stated that the contract was not expected to lead to any savings in its first year of service.
HHSC still upholds the original stipulated savings estimate.

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