Winning megaprojects with low initial bids and then turning a $20 million project into a billion dollar con of the client appears to be an artform at IBM. Governments all over the world have suffered, tax payers have paid for senior IBM bonuses. Ordinary citizens have gone six months or more without their paycheques.
This behaviour appears to be IBM policy and not an accident. This very grave situation cries out for a deep investigative long form feature. Together the governments of Canada and Australia and Pennsylvania (just the ones I’ve found so far) likely have a case of deliberately malicious business practices.
Apparently IBM has made USD $780 million building a payroll system for the Canadian Government which does not work.
Potential Savings on Payroll
The idea was to save money by eliminating jobs. Canada has about 260,000 public servants. Over 1200 people were working on payroll (accountants, bookkeepers and managers mainly with some IT guys thrown in to make it work). This is about half of one percent on payroll. Payroll is about one third the cost of accounting in our company. I’m unable to bring our accounting costs much below 3% of turnover on a sub-million dollar turnover despite strong efforts and automated software like Freshbooks.