Here's an item from today's Current produced by the Florida Tribune:
The company that handles the People First human resources system for the state has sold off the unit that handles the work to a company based in London, England.
Convergys Corp. announced last week that it had sold its HR unit to NorthgateArinso for $85 million in cash and $15 million in cash over the next three years. The move, however, comes just three months after the Department of Management Services inked a five-year extension with Convergys worth $248 million.
Sen. JD Alexander, R-Lake Wales, said Thursday that he had just heard about the deal and added “I’m not sure what I think about it.” But Sen. Dave Aronberg, D-Greenacres and a critic of past outsourcing deals, said that he had a "skeptical eye" about the deal.
"Whenever foreign companies are in control of sensitive personal information it raises concerns for me,'' said Aronberg, who said he wants to get more information about the transaction.
Linda McDonald, a spokeswoman for DMS, said that state officials “expect the contract to be honored.” McDonald noted that while NorthgateArinso is based in the United Kingdom that the contract has “clear language” that personal information does not leave the United States. McDonald also noted that Northgate is controlled by a United States private equity firm, Kohlberg Kravis & Roberts.
But a controversy arose several years ago when a subcontractor hired by Convergys sent work on People First overseas to India. While Convergys said it knew nothing about the data being shipped overseas, the incident prompted DMS to warn more than 100,000 state employees to take precaution against possible identity theft.