Assemblyman Mike Eng, D-Monterey Park, is proposing legilsation that could result in cost savings by reducing reliance on IT contractors, the Sacramento Bee reported today.

Union decries increasing number of outsourced IT contracts for state of California By Aurelio Rojas - arojas@sacbee.com Last Updated 12:23 am PDT Wednesday, March 12, 2008 Story appeared in MAIN NEWS section, Page A3

The number of information technology contracts awarded by the state of California has tripled since 2003, and the state could save up to $100 million annually by reducing its reliance on contractors, according to a new union study.

The report, titled "Too Many, Too Costly, Too Little Oversight," was compiled by the Service Employees International Union in preparation for a hearing today in the Legislature and based on information provided by the Department of General Services.

SEIU represents 7,800 state IT employees, 80 percent of whom work in the Sacramento region. The union is sponsoring AB 2603 by Assemblyman Mike Eng, D-Monterey Park, that would require state departments to report IT contract expenditures so that they could be compared to the cost of state employees doing the work.

According to a 2006 report by the independent California Research Bureau, outsourcing IT work cost 50 percent more than doing the work in-house.

"At a time when we have so many budget issues and a ($8 billion) budget deficit, it's very important that we pursue any avenues in which might save money," said Eng, who will chair today's joint hearing of the Assembly Committee on Business & Profession and Public Employees, Retirement & Social Security.