Local Outsourcing/Consolidation: Proven to Be Viable Cost-Cuitting Measures for State / Local Governments Years Public Sector Details ane ate Total aon c 2002-2010 Missin Seats Digitized State Medicaid health record ~87MM ro) Government & Port Authority of | E-ZPass (electronic toll collection) can process £ 1993-2010 New York and 2.5x to 3x more vehicles per lane than toll : z 2 New Jersey attendants | ft Sue oe Se ee oe ee oe ee oe ee Se Se oe Se oe Pennsylvania Consolidated office supplies + computer or 2003 ‘$30MM : State Government procurement pent Outsourced HR and supporting IT system to © — 2002-2004 Management pponing ' 8¥ 173MM 0.3% 1.5% C Sérvices. FL ocal contractors O ’ - posites Outsourced HR, payroll and enterprise service 2004-2005 Human Services — P ~1B 0.8% 5.0% oe center to private vendors Commission, TX Outsourced police force to county sheriff in an > 7M Sy = Sy > ae Mae. ee effort to avoid bankruptcy . : sit eee = 2 Set up a Family Assistance Hotline within 10 a 2005 ei Red days via an outsourcer (vs. 3-6 months doing it = ross 7 LL in-house) ne Note: 1) Annual Budget of the year when outsourcing program started. Sources: HR Outsourcing in Government Organizations, The Conference Board; Outsourcing Methods & Case Studies, 2009; Maywood, CA data per The Economist. PA state government data per Ed Rendell, Governor of Pennsylvania. ) E-ZPass per E- KP Zpass New Jersey Customer Service Center, Missouri Medicaid case study per ACS; American Red Cross per Tholons, Government Sector Outsourcing. (@)) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 351 ap By ie = 7 Responsibility and Reform Co-Chairs’ Proposal (@)E) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 352 HOUSE_OVERSIGHT_021017