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US state adopts bill seeking outsourcing bar

WASHINGTON - The American state of Kansas has adopted a bill seeking to bar outsourcing telephone enquiries about its food stamp program to India and other countries.

The bill sponsored by Kansas Democratic legislator Tom Holland was passed in the Kansas lower house with a 95-19 vote and by the Senate 30-5 on Saturday and has been sent to Governor Kathleen Sebelius for her signature.

The Department of Social and Rehabilitation Services (SRS) signed a contract with eFunds Corp in September 2002 to handle food stamp benefits and take clients' calls. In its 2003 annual report, eFunds said it has two customer call center in India and that about 3,100 of its 5,400 employees are outside the United States.

Outsourcing became an issue in the legislature when it was revealed that Kansans' calls about food stamps were answered by workers not in Kansas but in India.

The measure would require SRS to renegotiate its US$1.7 million a year contract with the Arizona-based eFunds Corp, SRS spokesman Kyle Kessler said.

The agency said it does not know whether contract costs will increase if calls are answered in Kansas.

In March, Senator Mark Taddiken (Republican) had persuaded fellow senators to add a ban on the outsourcing of food stamp work to a bill on next fiscal year's budget.

Under his proposal, the ban would have taken effect on July 1. But SRS Secretary Janet Schalansky told legislators the ban would raise the cost of the eFunds contract by about US $640,000 as a center will have to be set up in Kansas.

(Asia Pulse/PTI)


May 14, 2004


 
     
         
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