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Matthew Vella
US consultancy firm Accenture has walked away with burnt fingers from the UK’s futuristic IT overhaul at the NHS, after reaching an exit deal following delays with the implementation of the new IT system that would hook up 30 million patients with hospitals and doctors’ clinic.
Accenture was responsible for more than 80% of the systems installed so far. Computer Sciences Corporation has now taken over as the largest regional contractor on the NHS’s troubled GBP6.2 billion IT overhaul.
Critics have blamed healthcare software provider iSoft, a tenderer for the EUR30 million Mater Dei IT contract, as the central cause for Accenture’s withdrawal, but others say iSoft has benefited from the exit. CSC Europe’s president Guy Hains said work will speed up now that it has reached new arrangements with iSoft, which had been subcontracted into the National Programme for IT by both Accenture and CSC.
Accenture’s withdrawal means it will be unable to recoup any of its losses by bringing legal action against iSoft, as any potential litigation relating to the period between 2 April, 2004 and 28 September, 2006 was annulled in the termination agreement between the two companies.
Delays in completing work on iSoft’s centerpiece software Lorenzo are seen by some as the cause of Accenture’s departure, as much of Accenture’s payment by the NHS depended on iSoft’s delivery.
In March Accenture made a USD450 million provision against future losses from two contracts. In June the consultancy firm blamed delays on its software subcontractor iSoft, a tenderer for the EUR30 million IT system at Mater Dei.
Accenture also agreed to drop its potential legal claims against iSoft as part of its exit deal with the NHS. In August, iSoft posted a GBP344 million pre-tax loss last month while its banks gave it some breathing space with new credit but under strict conditions. It has also emerged that iSoft had received payments directly from the Department of Health of GBP82 million for work it had not yet carried out, and that problems started when the DOH would not further any more upfront cash for the company to meet financial expectations.
Accenture had installed a larger range of IT systems than any other lead contractor, making progress on 19 of the 20 work areas defined under the NPfIT. BT has made progress on 10 areas, CSC on five and Fujitsu on three.
In February Accenture and CSC produced a report on iSoft’s progress in developing its Lorenzo software package for NPfIT. It found “there is no well-defined scope and therefore no believable plan for releases”.
Accenture must now repay GBP63 million of the GBP173 million it has been paid for work delivered on its two contracts.
CSC now has contracts across three regions with iSoft to install the financially stretched firm’s Lorenzo package. CSC and iSoft must install IT systems for 620,000 NHS staff.
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