IT privatization: Keep an eye on it

From The News & Observer:

Gov. Bev Perdue wants to take a look at privatizing parts of the state's IT operations.

I remember when Georgia privatized its IT operation. Despite the big numbers it didn't seem like that interesting of a story. I can't speak for the rest of the press corps back in Georgia, but I ignored the issue.

I regret that. From The Macon Telegraph, in the year after that privatization:

Though 31 entities initially went after the two contracts, most fell by the wayside as the state discussed what it wanted from potential bidders.

In the end, IBM was the only company to bid on the largest contract.

AT&T got the other contract. Together, they total $873 million over eight years for IBM and $346 million during five years for AT&T.

Officials say Georgia will eventually save money over what it used to spend on computers and telephones, but right now it's costing millions more each year.