Available local IT talent lets Mich. Blues keep jobs at home

Score one for America. Also, score one for jobs-starved Detroit. And leave it to health IT to be the catalyst for hiring.

When Blue Cross Blue Shield of Michigan looked to cut costs, it determined it could save $15 million a year by moving much of its contracted and outsourced IT work to India. But the Michigan economy is hurting and BCBS Michigan already had announced 1,000 layoffs. "My stomach couldn't handle that," company President and CEO Dan Loepp told the Detroit Free Press. "I said there's got to be a way to cut costs and still keep jobs in Michigan."

Gary Harvey, vice president of systems development, further explained to Healthcare IT News that, "[outsourcing IT work to India] was in conflict with our mission as a company. As the largest not-for-profit insurance company in the state, our mission is really to help grow the economy and jobs in the state of Michigan."

So Michigan Blues called in an IT consultant, who came up with the idea of setting up an IT development center in economically ravaged downtown Detroit. It is costing $7 million to launch the program, and annual savings will be about half of what India could offer, but the Blues could entice other companies to join in supporting the center. Plus, the company would save on training expenses by staying close to home. "Here in Michigan, we've had so many layoffs in the last three years," the consultant, Cindy Pasky says. "We have an incredible base of IT talent."

To learn more:
- read this Healthcare IT News story

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