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December 4, 2006

ACS captures $230m Texas deal extension

Texas is proving to be a happy hunting ground for IT services vendors, with outsourcer Affiliated Computer Services Inc winning a $230m contract extension with the state's Health and Human Services Commission, HHSC.

By CBR Staff Writer

The award of the new two-year deal comes just one week after IBM Global Services announced an $863m contract with the Texas Department of Information Resources to provide data center services.

The state has been of the most aggressive in terms of outsourcing local government IT and back office services to contractors. The HHSC awarded an $840m deal to Accenture in July 2005 to help modernize the technology infrastructure supporting the state’s social services in a deal that has attracted heavy criticism over costs and performance.

ACS has worked with the HHSC since 2004, when it originally won a deal to provide Medicaid claims processing, operations support, and primary care case management program administration for the State’s Medicaid program. The new deal extends the relationship until August 31, 2009.

Texas operates the third-largest Medicaid program in the US, and ACS will now continue to support the 3 million Texans who have Medicaid coverage with claims processing, provider relations, prior authorization, medical management, and call center support.

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