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Local Outsourcing/Consolidation: Proven to Be Viable Cost-Cuitting Measures for State / Local Governments Public Sector Details 2002-2010 Missein Seats Digitized State Medicaid health record 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 New Jersey attendants Automation Pennsylvania Consolidated office supplies + computer State Government procurement Dept. 2 2002-2004 Management Outsourced HR and supporting IT system to Z local contractors Services, FL Health and . . 2004-2005 Hunan Seivices Outsourced HR, payroll and enterprise service ee center to private vendors Commission, TX Outsourced police force to county sheriff in an Mayen, OF effort to avoid bankruptcy Set up a Family Assistance Hotline within 10 days via an outsourcer (vs. 3-6 months doing it in-house) American Red Cross 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. (@ 4 www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 351 Focus on Operating Efficiency — Policy Options From National Commission on Fiscal Responsibility and Reform Co-Chairs’ Proposal KP www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 352 HOUSE_OVERSIGHT_021017