London software testing news UK

Ten year outsource deal to yield no savings

Posted in Acceptance testing by testing in London on July 13, 2009

From Pilot Online

Anyone who has worked for a company testing a new computer system knows the horrors that always visit a so-called “beta site” – the place where the bugs are worked out. That’s what Virginia has become: an enormous IT guinea pig.

No state has ever attempted such a sweeping consolidation of computer operations, and no state except Virginia has volunteered to turn over its entire computer infrastructure to a private company.

When the 10-year contract has a $2.3 billion price tag, value is no small matter. Lemuel Stewart Jr. could have been more diplomatic, but his concerns were legitimate. Rather than saving the state $100 million annually, as Warner predicted, VITA is in its third year of cost overruns. Legislative analysts now predict no savings over the 10-year term of the outsourcing contract.

System upheaval without cost savings equals an operational and political meltdown. The problem is partly explained by the decrepit condition of many of the state’s computer systems, some of which had no security firewalls – the equivalent of a lock for the office door – before the consolidation.

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