In Other News, the Sun Rose this Morning….

According to reports in the IBJ and elsewhere, the trial pitting IBM against the State of the Indiana is winding down. At issue are cross-claims about the reasons for and propriety of the termination of IBM’s contract to provide welfare intake services.

According to the IBJ, IBM’s lawyer argued that the real reason for the termination was state budgetary woes. The State’s lawyers defended the termination by complaining that “IBM was more concerned about profit than getting assistance to needy people.”

And the sun rises in the east….

Those of us who study outsourcing have repeatedly made the point that–while contracting can be a useful tool in many circumstances–it is not appropriate in areas where government is providing essential services to vulnerable populations. Despite lots of irresponsible rhetoric to the contrary, government is not a business. It’s purposes and aims are different. Private, for-profit organizations have a duty to shareholders; government agencies have obligations to citizens.

Evidently, this essential distinction escaped the notice of the Daniels Administration, which is now shocked–shocked┬áto discover that a business would prioritize the pursuit of profit.

In other breaking news, it appears that rain is wet.


  1. Thanks Prof.
    Right on. If this program had anything to do with Wealthy White Men it would have been taken care of properly. Since it was only for poor people, women, kids etc, it was a very low priority for the “R” people. AND a chance to trade favors with their friends in the business world. Remember, politics is a team sport and the “R” team is alway and only for the people who have already made it. Everyone esle can drop dead…literally.

  2. I’m with you- but the species that fills the boardrooms of America is the same that votes at the polls and theoretically serves us in public office.

    My pound-the-table point is it’s not as simple as just making the right choice. It’s also human beings that very very usually and uniformly become tempted with the “easy way out”, if not kept in check by a vigilant citizenry.

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