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Texas Outsourcing Project Hits Snag

Backups, loss of records cited in data transfer halt.

The Dallas Morning News reported today that Texas Gov. Rick Perry has called a halt to transfer of state records to IBM under an outsourcing contract in place since 2005, citing lack of data backups and security required under the contract. The paper reported last month that a server crash in the Tyler Medicaid fraud division resulted in loss of records essential to Medicaid fraud prosecution by the state attorney general.