Kansas Statehouse in Topeka, February 2014.

Topeka ? Kansas’ information technology division will retire a computer mainframe used by four state agencies and contract with a private company to take care of the work, drawing concern from state employees about possible layoffs.

The state has agreed to a five-year contract with Illinois-based Ensono for more than $14 million to replace an IBM mainframe as recommended last year in a state efficiency review, The Topeka Capital-Journal reported. The mainframe stores data and handles all the computer functions that an agency needs.

The review said the mainframe costs the state $6.38 million a year, including $2.4 million in labor costs. About 40 full-time-equivalent IT employees support the mainframe, which serves the Department for Children and Families, the Department of Transportation, the Department of Revenue and the Department of Labor.

“If bundled with a comprehensive data center outsourcing initiative,” the report said, “the state could generate between 15 and 25 percent in total savings or $960,000 to $1.6 million in annual savings.”

The new contract is the first of the technology-related recommendations the state is implementing and that other planning for other efforts is ongoing, Department of Administration spokesman John Milburn said Wednesday.

IT workers are worried they could lose their jobs, said Rebecca Proctor, executive director of the Kansas Organization of State Employees, and outsourcing such services sends taxpayer dollars out of Kansas. Proctor said IT employees told her they were called to a meeting last week to discuss the contract decision, and one worker emailed her later to say it appeared dozens of employees would be laid off.

The state has to notify the union at least 45 days prior to layoffs, she said, and there’s been nothing yet.

Milburn confirmed a meeting with IT employees had taken place, but didn’t have specifics about possible job cuts.

“It’s unclear at this time just exactly how many will be affected,” he said.

The audit recommended considering contracts with private companies for “all existing state-owned data centers,” which includes servers and storage. There are 60 full-time-equivalent public jobs supporting “the server, storage and data center environment,” representing $4.3 million in annual labor costs, according to the report.

It estimates a potential $860,000 to $1.3 million in labor savings related to consolidating and outsourcing data center support.