The Pitfalls of Ambitious Outsourcing Projects

Washington Technology did some further reporting on the cancellation of one of the state contracts issued in Florida. Apparently, former Florida CIO Kim Bahrami, who headed the State Technology Office, went to work for BearingPoint four months after resigning her state post and 11 months after awarding a $126 million contract to the consulting firm.

As reporter William Welsh points out in his story, “The collapse of the MyFlorida Alliance illustrates the pitfalls that await both state governments and contractors that embark on ambitious outsourcing programs. Statewide projects require the support of so many different stakeholders and constituencies — such as state employee unions, legislators, local businesses and the users of the new outsourcing services — that a dissatisfied party easily can derail the projects.”