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‘Two local affiliates of IBM – Questronix and SAP – have also bluntly said that the IBM system that GSIS bought “sucks.”
GSIS vs. IBM Philippines
The Government Service Insurance System (GSIS) has finally admitted to its membership that, all along, some of its members had a good reason for their complaints. The GSIS has sent a letter to the membership – active members and pensioners -- detailing how the software installed by computer giant International Business Machines Corporation (IBM) which forms a large part of the GSIS system has not worked as well as promised and has, in the words of the GSIS letter, "turned into a nightmare."
This is the primary reason the GSIS has been having difficulties processing the claims and benefits of members, pensioners and other beneficiaries. IBM’s software is also the cause of the constant glitches in the posting of members’ payments to the GSIS.
Apparently, the GSIS has been after IBM Philippines -- for three years now -- to fix its database management software which lies at the core of the problem. No less than IBM Ontario has admitted that IBM software is to blame for the problems of GSIS, but the company’s local representatives have still not been giving GSIS the proper after-market service.
Two demand letters dated May 14 and 21 have already been sent to IBM’s Armonk, New York headquarters. The letters asked IBM to rectify the errors. These defects, which reportedly occur at least twice daily, have delayed the processing of transactions of 20,000 GSIS members for two months.
GSIS’ computer is capable of processing applications although in a "very slow manner." Before the glitch three years ago, the GSIS was able to process 40,000 transactions a day, dispense loan applications in over a minute, and just a day to process members’ claims and benefits.
Local IT practitioners privy to the GSIS dilemma note that the only thing IBM Philippines did was to upload a "patch" to the software that runs its DB2 database management system installed by IBM. That did not solve the problem; the IBM software is still creating a nightmare for the government financial institution.
Two local affiliates of IBM -- Questronix and SAP – have also bluntly said that the IBM system that GSIS bought "sucks." This may not seem like techie talk but, yes, "it sucks big time."
GSIS maintains that despite the software problem, the integrity of its members’ records is intact and that it is already consulting third-party IT sources on how to deal with the problem. Nonetheless, the GSIS has not shut the door on IBM, leaving its doors open to IBM in the event that the local IBM office shows any intention to do the right thing.
But the GSIS’ problems have gone on for far too long. The GSIS warns that it is close to exercising its legal option – to take IBM Philippines to court in order to protect the interests of its clients and the institution itself.
(In February, GSIS filed a complaint against its own former senior vice president and the IBM Philippines chief for illegally extending the use by the GSIS of IBM’s OS/390 software program from April 1 to June 30, 2008 at the cost of P4,878,686.40 per month without the necessary certification by the GSIS General Accounting and Budget Office as to the availability of funds, as well as a confirmation that the extension had been included in the 2008 Annual Procurement Plan of the GSIS.)
If IBM can treat one of its biggest clients in the Philippines so shabbily, what more its smaller clients?
The GSIS describes the effect of the IBM software’s failure as "life altering" to its membership. Of course! To delay the processing of benefits to GSIS members is life-threatening to these members, most of whom depend on that money for the medication and food that they need to survive.
It will be a big fight if the GSIS must force IBM to bring its system back to full operational efficiency. IBM, after all, is not a corporate giant for nothing. But one thing going for the GSIS is that, time and again, its present management under president and general manager Winston Garcia has shown that it has the political will and the staying power to do what is right no matter how difficult that may be.
This is one battle for which GSIS members and pensioners should rally behind the institution that has been providing them benefits seamlessly for years until this IBM software snafu messed things up.
The humility and candidness shown by the GSIS in admitting that there is a problem is rare these days.
The GSIS had the best of intentions when it acquired the products and services of the giant international computer firm, which was to give its members and pensioners a most efficient service through the computerization of its system. But simply put, the GSIS was let down by IBM.
Having given IBM Philippines a final demand letter and gearing itself for a legal fight, the GSIS is also undertaking parallel actions to solve the problem facing its members. Among these is the possibility of migrating to another software, something which it admitted will, however, take some time to effect.
There’s no doubt that the responsibility in clearing up the mess belongs to IBM because it hyped its software package in what may be a glaring example of false advertisement. It said its system could handle the voluminous data handled by the GSIS on a day to day basis. That was simply false advertising. Else, why could IBM, with its long experience dating back to the 19th century, do nothing when the software that IBM installed miserably failed?
-Ducky Paredes