The three contractors were hired to oversee New York City’s new payroll modernization project entitled CityTime. The contract was originally budgeted for $63 million, but during the project’s 2011 investigation, it was found that over $700 million had been spent. Officials identified that much of the project budget found its way into the pockets of AIC’s employees.
In response to this scandal, the New York City Mayor’s office has promised to place a heavy emphasis on new internal control protocols for IT contracts in the future.
This scandal provides a great example of a reactive environment. Instead of recognizing their role in the scandal, city officials are placing full blame on the accused contractors and looking for new ways to control future contracts. It seems that NYC provided the perfect environment for greed-motivated professionals to succeed. Will the city’s efforts effectively decrease IT spending and confusion, why or why not? What could the city do decrease the cost and risk of the IT industry?