Thursday, 27 June 2013

UK Restructuring - Special Comments Page

As there are so many comments appearing in the blog about the restructuring, i.e. firing of staff, in the UK, this page has been created so that anyone interested in this can post a comment where it is easily accessible.
Cassandra has lost track of what is meant to be happening in the UK due to the many and various announcements, and non-announcements so perhaps the requested comments will shed some light on the matter.

Thursday, 13 June 2013

UK MPs Not Impressed with "Rotten" CSC

The news this week is full of uncomplimentary statements about CSC which as we all know cannot sell a life belt to drowning man but with UK government's backing is 'selling' more of its NHS IT to users who do not want it. On this basis CSC UK could fire all its sales staff and still sell at least one product since the UK Government is actually bribing NHS units to use it.

Read these extracts and links to see how bad things are:


NHS still set to spend £600m with 'rotten' CSC on 'hopeless' NPfIT systems

The Public Accounts Committee grilled executives on the failed project

The NHS is still set to spend nearly £600 million on Lorenzo patient record systems provided by CSC, despite the failure of the government’s National Programme for IT (NPfIT).
Senior executives from the NHS were grilled today by the parliamentary Public Accounts Committee, where chair Margaret Hodge called CSC a “rotten company” and said the Lorenzo system was “hopeless”.
She and other members of the committee expressed disbelief at the mismanagement of the CSC contract by the NHS, where it is still dishing out hundreds of millions of pounds to the company despite it having failed to deliver on a number of key targets over a ten year period
Read on:

TECHWEEK Europe reports

NHS To Spend £2.2bn On ‘Rotten’ CSC NPfIT Work

The much-maligned NPfIT was canned in 2012 but CSC is still making a load of money from its Lorenzo contract
The NHS will spend an additional £1.1 billion on CSC software and services as part of the much-maligned National Programme for IT (NPfIT), meaning the IT supplier will receive £2.2 billion for a project that was canned last year.
The project is supposed to be winding down thanks to major shortcomings on the part of the IT supplier.
Under the original 2003 contract, CSC was supposed to have delivered the Lorenzo electronic patients’ records system by 2005 to 166 different NHS bodies, yet by 2011 it had only made it to 10, following contract renegotiations.
Thanks to manifold failures bythe NHS and CSC, the whole NPfIT initiative was scrapped in September 2012, but it was clear Lorenzo would continue to be deployed.

NPfIT nightmare

It emerged yesterday, during a Public Accounts Committee hearing on NPfIT, another £500m had been set aside by the NHS for the CSC Lorenzo contract, whilst another £100 million could be used to support as many as 22 NHS Trusts that want to run the software.
The full amount set aside for CSC’s total NPfIT work, including non-Lorenzo services, stands at £2.2 billion, £1.1 billion of which has already been paid, the PAC heard from Tim Donohoe, senior responsible owner for local service provider programmes at the NHS. Donohoe claimed the NHS had secured “a good deal for the taxpayer”.
Chair of the PAC, Margaret Hodge, said the announcement of NPfIT’s closure appeared to have been a “PR exercise”, as she described CSC as a “rotten company providing a hopeless system”.
“I call it a deck chairs on the Titanic exercise, you were shifting the way you were running it, but you were keeping all the expenditure going,” Hodge added.
Asked why the NHS had gotten itself into a position where it was cheaper to keep the CSC contract than fight it in courts, Donohoe said “we didn’t have a strong negotiating position because of the contracts”.
“We have sought over time to reduce our contractual exposure with CSC,” he added. “Options around terminating the contract… would not have offered good value for money.”
The NHS has also handed CSC £2.9 million in legal fees since it started negotiations to kill the contract in 2010.
CSC remains largely unapologetic and proud of its work, emailing TechWeekEurope the following response to yesterday’s comments: “CSC has delivered a wide range of critical systems to help the NHS reach its goal of improving patient care,” the company said.
“CSC has been a strong partner to the NHS and currently has more than 2,500 systems operating across the UK as part of the NPfIT, contributing to advances in primary care, acute care and emergency services.”
What do you know about public sector IT and its many failures? Try our quiz!


NPfIT legacy: NHS yet to spend £600m on CSC Lorenzo patient records

The NHS has still to spend £600m on the Lorenzo patient record systems system provided by CSC, according to the Public Accounts Select Committee (PASC).

The original value of the contract was £3.1bn at 2006/7. Since then the NHS has reduced its contractual exposure with CSC, with the company originally having exclusive rights to supply to 160 trusts.
To date government has spent £1.1bn with CSC, with that figure rising to £2.2bn over the total life of the contract.
So far Morecambe Bay is the only trust to have a Lorenzo system across a major hospital.
“You’re going to spend another half billion with the rotten company to supply hopeless software,” said Margaret Hodge, PASC chair.
“After 10 years of failing to deliver a product on time we are now going to give them potentially another 100 million in so-called success payments.”

Sir David Nicholson, chief executive for the NHS in England, said: “When we cancelled the contract with Fujitsu, the advice we were given at the time was that everything would be fine. But of course several years later we are still involved in legal details.”
Read on.

The Daily Telegraph today comments on the bribery tactics being used by the government. Tactics which only benefit CSC. What is going on here? Is there an agenda not disclosed to the public?

Monday, 10 June 2013

Is It Deja Vu All Over Again?

Over the last few months many new comments from what looks like CSC employees have been made about how the restructuring is going. While any restructuring gives opportunities for any disaffected employees to make negative comments these seem to have a thread of authenticity about them. 
Here are a few, ranging from current to older as they appeared in the comments pages. Make your own judgement about the situation.

“I know the UK employees still feel confused and least the ones I speak to !

Clearly they know how to take cost out, but growing the top line in this competitive market is tough for anyone so my guess is they are looking to steady the ship so they can find a buyer, and the CEO and his chums sail away into the sunset will millions of $ each - while my old friends and colleagues who work hard and have shown long term loyalty to the company get shafted.

I just hope for the sake of those left they don't get sold to IBM.”


“To answer the question on restructuring, well its complete officially & many have been laid off on some pretext or the other. And having said that, this seems to be a failed project as many still don't know what role they are going to play & what will happen to the grades and promotions...very confusing for employees & I guess even top management. May be the Bonton guys are best to answer if they understand what they did :) “


“CSC in the UK, which contains a fair amount of EMEA leadership is in chaos and stasis.

Far too many clueless managers and executives focused only on safeguarding their jobs, as they are struggling to find jobs in the open market, at the expense of capable and effective employees.

It's about time the corporate leadership realised that they need to rip out the middle managers and country / region execs and their cronies and start fresh. Last years redundancies and subsequent job losses should have been executed with these people top of the list. In allowing them protection, CSC has not only lost a year, but has enabled another 12 months of new business stagnation.

Short term cost cutting at the expense of long term capability, effectiveness and success. The corporate leaders need to cut through the shroud of BS from regional leaders / middle managers and realise that its these groups that are responsible for CSC's predicament.“


“> To answer the question on restructuring, well its complete officially

Is it? Maybe you can tell me which division/department I work in and who my manager is, cus nobody else has?! It might be "complete" in the US and in the smaller divisions (legal, hr, marketing etc), but the bulk of the 60K people in GIS and GBS outside the US are in the dark. “


“The cost cutting continues, with Liz Benison announcing 'up to 750 potential redundancies' today, 7 June '13.

That'll help morale.”


“You know what they say, the beatings will continue until morale improves.”

Just wait, soon you will hear of another panicked move to make UK staff redundant in similar numbers to last year with the focus being offshoring to India, although you probably wont hear the word offshore. They have not got a clue what they are doing at the top. We have a situation of many people being pulled off other work to produce a particular ill thought out and rushed system. Targets are being missed, promises broken on projects and work that we have expertise in supporting and producing results within as a freeze on all new development or roll out was introduced. There was lots of money to be made and good customer perception to be had and its all been blown out of the water. There will probably be some more CSC sites being shut down also. The company is being stripped down to the bare bones so a few people at the top can make a killing by selling what looks on the face of it, a lean and efficient company. I have witnessed new offshore staff coming in at a senior level but a lower cost than those working under them and there have been many communication issues on the conference calls and much confusion. In fact, the progress goes much more smoothly when they are quiet and those underneath end up taking over whatever they are there to do. If it wasn't so serious it would be laughable. I have heard time and time again about people saying such and such a person has suddenly been offered redundancy and gone and people saying why have they let one of the best Project Managers go or one of the best Release Managers etc. CSC can ill afford to let its best people go, as there are a few bad ones who make the same mistakes over and over, but then again its a symptom of not listening and that should bode well for them with a future with the higher echelons of the company. Any company buying CSC will simply be buying an order book or the existing contracts, as what is left will be very disgruntled long serving staff and a lot of cheap new staff who have yet to pick up the skills and experience to avoid projects failing, when things could actually have been turned around by listening to talented workers.


It is Deja Vu all over again!

Cassandra comment:
Is this one big death spiral starting with previous management but not apparently stopped by new management?
This spiral consists of:-
1. Bad investments and badly managed or concocted deals (CSC has/d a mantra "You can surely take a 10% challenge on these costs", when finalising deals, then hurting profits when said ‘challenge’ never worked out because it was pure fiction.
2. Leading to cost reductions all round from wherever.
3. Leading to poor services impacting reputation and poor sales plans on big deals.
4. Leading to declining sales.
5. Leading to too many people and too much infrastructure and too much over-capitalised  and under utilised kit and real estate on the books.
6. Leading to more cost reductions - probably not enough cuts in overhead functions like HQ's and over paid execs.
7. Leading to being behind the curve on getting costs out.
8. Leading to poor profits.
9. Leading to yet more late night management reviews with hastily offshored services, and little time to manage the business properly.
10. Leading to coming full circle at 1 but further down the Death Spiral.

Questions we have previously posed have yet to be answered.
They include:
1.    What is the scale, in numbers of heads and locations, of the people reductions?
2.    What is the cost of these reductions and where can they be seen in the forecasts?
3.    What is the full year revenue and profit impact of the reduced number of revenue generating staff?
4.    What is the full year revenue and profit impact of the selling of unwanted businesses?
5.    Have reductions in all the overheads; from back office functions to capitalised items, been included in forecasts?

Perhaps the Wall Street Analyst Watch Dogs ought to ask them.