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Thursday, April 06, 2006

Accenture's Problems with NHS

Accenture had bad news to tell stockholders the other day when they admitted that they had to write off a $450 million bill with NHS as the project is running behind. The modernization of NHS will be amazing – if it ever actually happens.

The 2 billion they have in contracts are only to be paid upon the delivery of working systems. Richard Granger, chief executive of NHS Connecting for Health, said that Accenture's problems just go to show that companies should take the risk of developing public sector IT systems.

The problems caused by this delay will be large and most likely costly for all involved. Companies may also discover that they will be hit hard by the penalty clauses if they choose to walk away from the projects. Maybe this just goes to show that you should be very careful when accepting and planning contracts. Learn more in the full article (link above).

Added by Computer Consulting Kit