As a result of pressure from the University of Texas Save Our Community Coalition, the UT administration announced that it will be scaling down its Shared Services project and cutting ties with Accenture, the global consulting firm that designed Shared Services.
Accenture’s plan would have eliminated 500 jobs.
In addition to cutting staff, Accenture’s plan would have funneled many requests for administrative services to a centralized call center, reducing direct contact between staff and those they serve.
The cost of implementing Shared Services would have been at least $54 million, and as the Save Our Community Coalition has demonstrated, Accenture overestimated the savings that its plan would generate.
In a related development, the Associated Press reports that another Accenture project with a Texas government agency is $64 million over budget and is in danger of not being completed on time.
At UT, the Save Our Community Coalition, a broad-based campus coalition organized by United Students Against Sweatshops (USAS) and the Texas State Employees Union CWA Local 6186 (TSEU), waged a 14-month long campaign aimed saving the 500 jobs slated for elimination.
The campaign included mobilizations, building a wide base of opposition to Shared Services, and confronting the administration about inconsistencies and errors in the Shared Services plan whenever possible.
At an April 23 rally, one of several rallies against Shared Services held on campus, students, faculty, and staff spoke out against Shared Services. The rally was held on the steps of the offices occupied by top UT executives.
After the rally, students walked to the office of UT President William Powers and asked to speak to him about their concerns about Shared Services.
When he refused, the students conducted a peaceful sit-in at his office, and 18 were arrested.
The announcement that UT was cutting its ties to Accenture and scaling back its Shared Services plan came about two weeks after the rally and the arrests.
In addition to the rallies, the members of the coalition succeeded in getting 100 faculty members to sign a letter to Powers expressing their opposition to Shared Services. Members of the coalition also got the Graduate Student Assembly to pass a resolution opposing implementation.
While Shared Services has been scaled back, it has not been eliminated.
UT will pilot Shared Services in the Provost’s Office and the College of Education.
After the results of the pilot have been assessed, UT will decide whether it will expand Shared Services.
Save Our Community wants to make sure that the assessment is fair and called on the administration to involve staff affected by the outcome in the planning process. It also wants qualified experts to create the metrics that will be used to evaluate results and mutually agreed on benchmarks that the pilots must meet in order to continue.
A bigger concern of the coalition is the way that UT’s search for cost savings is always limited to measures that result in layoffs, pay freezes, or benefits cuts for employees.
“The UT administration tells us we need to save money by laying off staff and eliminating positions, yet all around me I see UT expanding and investing in new construction projects,” said Sarahi Soto-Talavera, a UT student and TSEU member. “We need to stop balancing the budget on the backs of staff, and start prioritizing the people who make our campus run.”
Not far from the UT campus is the office of Texas Attorney General Greg Abbott, who agreed to a $210 contract with Accenture to design a new computer system for his Child Support Division.
In 2011, the State Auditor’s Office issued a report saying that the new computer system known as TXCSES 2.0, or T2, would be implemented in three phases. Full implementation would be complete by 2017. The first phase was on track to be completed by October 2013.
But more than six months after its scheduled implementation, the first phase has yet to be completed.
The Associated Press reports that earlier this year, a report by UT faculty members hired to monitor the project said that the T2 completion date was overly optimistic. According to the AP, it also “raised warning about substandard work that could escalate costs down the road.”
To address this problem Abbott agreed to a contract amendment that raised the cost of the project by $64 million.