NHS agreement with CSC ‘weeks away’

Much-delayed agreement likely to meet opposition

An agreement between the NHS and CSC is due to be signed in the "next few weeks", according to the supplier.

The news follows months of extensive negotiations between the parties, as CSC system deployments under its £3 billion contract missed a series of deadlines and a major NHS IT deployment site reportedly dropped the supplier over a "lack of confidence".

CSC will deliver work on a "reduced scope and volume" under the forthcoming agreement, the company disclosed in a statement.

The work comprises a substantial share of CSC's business, and it has now cut revenue guidance for its financial year - which it reports on in three weeks' time - by $100 million (£61 million) to $16.1 billion (£9.8 billion), in part as a result of the reduced scope. Under NHS deals, suppliers are paid according to milestones reached - and a revised set of deadlines will result in fourth quarter payments for the supplier being delayed to next year.

The terms of a new Memorandum of Understanding were "substantially completed and CSC expects signing of the MoU in the next few weeks pending final NHS and other government reviews and approvals", the company said.

Any agreement is likely to meet stiff opposition. Richard Bacon MP, a member of the Public Accounts Committee, will challenge the signing of an expedited deal before the PAC has had a chance to hold parliamentary hearings about the project, Tony Collins reported in his blog today.

In spite of the reduced scope and the extensive time period leading up to the agreement, CSC said the MoU will "reaffirm a continued commitment" to the contract.

CSC chief executive Michael Laphen told company shareholders there would now be "a new era of certainty and partnership with the UK government".

The company was recently abandoned by Pennine Care NHS trust, reportedly over a "lack of confidence" in its ability to deliver a system quickly, following missed deadlines.

Tola Sargeant, director at analyst firm TechMarketView, said she expected that the new CSC agreement will be aimed at delivering a "large chunk" of the £600 million overall savings being sought by the NHS on the National Programme for IT.

She also warned that there was a risk that an alternative site for the iSoft Lorenzo patient administration system would not be found, following Pennine Care abandoning the system, and that the government could still consider pulling the plug on its contracts with lead suppliers CSC and BT.

"Both of these would have a much more dramatic impact on the financial performance of CSC", she said, than the current revised timetable.

Join the PC World newsletter!

Error: Please check your email address.

Tags servicesoutsourcingapplicationssoftwarepublic sectorIT Business

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Leo King

Computerworld UK
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?