Big Blue started a law suit against the State of Indiana, alleging it hasn’t paid up for work it had started.
According to IBM, it was given a contract to modernise “Indiana’s antiquated and highly inefficient” welfare eligibility system.
In October last year, Indiana told IBM it had fired it as the prime contractor to revamp the system. IBM said that while Indiana was within its rights to do that, the contract meant Big Blue was entitled to claim for deferred fees and the costs of equipment.
IBM had a partnership with the Family and Social Services Administration (FSSA) of Indiana and it rolled out a system to 59 counties in the state.
IBM said that the previous system was subject to extensive fraud, long waiting times, high error rates and other problems. It said that achievements acknowledged by Indiana included the creation of 1,000 private sector high quality jobs, and curtailing fraud.
Rather plaintively, IBM said all it wants are the payments that Indiana promised in the event it was fired from the project.