Monday, December 28, 2009

State of California Shuns HP in Favor of ACS - EDS Fallout?

At first the announcement by California Department of Health Care Services, stating it intends to award a $1.4 billion, 10-year contract to Dallas-based Affiliated Computer Services, may not seem to fall within the MPS wheelhouse.

Under terms of the proposed contract, Affiliated Computer Services would process claims for 7 million Medi-Cal beneficiaries, starting early next year.

What makes this interesting to me is the fact that Affiliated Computer Services, ACS, has recently been purchased by Xerox.

And the current provider, for the last 18 years, was not HP but EDS - HP inherited the account when it purchased EDS.

Get use to this battle - HP and Xerox fighting over a "service", not hardware.

Still think I'm crazy about the "Death of the Copier"??

This could possibly effect some 2,000 jobs here in California.

Besides all the Xerox vs. HP intrigue, why is it that my state officials can possibly justify risking thousand's of jobs by not utilizing a Californian company?

I guess MPS is not the only place where logic sometimes does not prevail.

More here.

And here.



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