INDIANAPOLIS -- IBM Corp.'s plan to fix problems with Indiana's privately run welfare system calls for more face-to-face help for clients and no longer "forcing" them into a self-service options such as telephone call centers and online applications.

The IBM plan lists 36 problems to be fixed such as "inaccurate and incomplete data gathering" and "incorrect communications to clients." The Associated Press obtained a copy of the plan.

Clients, their legislators and advocates have complained that the new system loses documents, misses telephone appointments and has lengthy hold times.

A spokesman for the Indiana Family and Social Services Administration said the agency's goal is to make the eligibility system better for the state's 1.2 million clients for food stamps, Medicaid and other benefits.

The state said threatened to cancel its 10-year, $1.16 billion contract with IBM as early as this fall if changes aren't made.

Canceling the contract would set back efforts in some states to outsource and automate welfare systems and move away from cost-intensive, hands-on work by government case workers.

The industry and some members of Congress have closely watched the Indiana experiment after a similar one in Texas ended with a canceled contract with Accenture in 2007.

IBM and its partners so far have taken over welfare intake in 59 of Indiana's 92 counties and now handle about one-third of the state's 1.2 million-person caseload.