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Follow TURFTxDOT outsources hundreds of tech jobs to Japanese firm
Texas Governor Rick Perry's 'new' highway department is about globalization and selling-off Texas public infrastructure to private, foreign corporations. So it shouldn't surprise anyone that he's keen on outsourcing Texas jobs, too, by having TxDOT send contracts to a foreign company rather than a Texas one.
TxDOT outsources tech to Japanese company
By Christopher Calnan
June 3, 2013
Austin Business Journal
The Texas Department of Transportation is enlisting a Japanese company to manage portions of its technology department — work worth $190 million over five years.
The company, NTT Data Inc., plans to offer jobs to 300 TxDOT tech workers for at least six months. The department will retain 50 existing tech workers, according to a Monday news release and TxDOT officials.
The contract, which includes a two-year extension option for an undisclosed amount, is expected to save TxDOT $30 million annually, spokesman Bob Kaufman said.
The announcement comes two weeks after TxDOT officials said they were undecided whether they would award a contract for tech work solicited from dozens of companies in January. It also comes less than one month after NTT Data officials disclosed setting up a North American headquarters in Plano.
NTT Data, the sixth-largest IT services provider in the world, will be responsible for application maintenance and development, customer support, network and telecommunications systems support, and IT security. Also, it is charged with modernizing processes and technologies used in TxDOT’s business operations, the news release indicates.
NTT Data was founded in 1967 as part of Nippon Telegraph and Telephone Public Corp. In 1988, NTT Data Communications Systems Corp. was spun off into a separate company from NTT. The company employs 60,000 workers in more than 35 countries. It also operates offices in Boston, Chicago, New York, the San Francisco Bay area, Toronto and Washington, D.C.