COLUMBUS - The state is studying the idea of outsourcing human resource processes to a private company, even though it has already spent $9.1 million to improve the way state employees do the work.
The state wants to know whether it would be better for a private company to handle tasks such as job applications, payroll, civil service testing, retirement enrollment and other operations.
A union leader says outsourcing could cost hundreds of state employees their jobs and could mean wasting money already spent to improve state human resources.
Suspended in April, the Ohio Administrative Knowledge System was a $158 million, six-year plan to reorganize statewide human resources, assets and procurement functions. The ailing state budget was blamed for halting the program, which came from Taft's Management Improvement Commission in November 2000.
Bruce Wyngaard, operations director for the Ohio Civil Service Employees Association, the union that represents most state workers, said the Taft administration is intent on turning state jobs over to private companies.
The state was trying to do it right
taking a management commission recommendation to make a major investment he said. And while it's engaged in a multimillion-dollar process the OAKS project is hijacked and we're asked to make a left turn.
However, Beverly Martin, Taft's deputy chief of staff, said no decision has been made on whether to hire a private company for human resource work.
The union is way ahead of itself here
Martin said. We're only looking at whether there would be any advantage for the state to do outsourcing. We may not.
In June, the state hired BAE Systems of Huntsville, Ala., at a cost of $173,142 as a consultant to study outsourcing state human-resources operations, according to state records.
BAE Systems would recommend a third party for the human resources work, as it did in helping Cincinnati-based Convergys Corp. win a human resources contract with the state of Florida. Convergys' Florida contract was attached to BAE's Ohio proposal.
State Budget Director Thomas W. Johnson said privatizing some administrative tasks would be a good way to save money.
Our system needed updating
he said. We think it's a great opportunity to save money in state government.
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