Sunday, 13 October 2013

The UK Government abandons NHS IT system

CSC's cash cow now dry? ref: previous post.

So the UK government has finally bitten the bullet and given the decision to close the disgracefully late and failed system it bought from CSC. 
The big questions now are:
What will be the impact on CSC earnings?
What will be the impact on employees?
What will CSC tell analysts on its next earnings call?
Will they fess up to the true state of monetary write-offs needed to clear this from the books?
What will CSC tell clients as this obvious failure damages the company's reputation.

Read more here

And here

And here


Anonymous said...

Seems like CSC has taken the brunt of politicians' rhetoric, when in fact the NPfIT was originally a wider collection of companies several of which had already failed/run away, no doubt due to the lack of profitability and the constraints of working with an archaic public sector body, that in most cases couldn't organise its way out of a paper bag. Let's be honest, there are several factors at work here:

The client (NPfIT) & other 3rd party's inability to meet their obligations.
CSC not managing these missed obligations properly.
Far, far too many stakeholders not bought into the overall picture, and with individual agendas & motivations.
CSC picking up other already failed contracts & being overly optimistic about it's subsequent ability to deliver.
And then what is already in the public domain, and that's CSC / iSoft's own failure to deliver Lorenzo.

As is always the case, there are multiple causes for contracts failing, and the politicians who just want to look good in front of the taxpayer go for the biggest & easiest target for maximum political gain, and to massage their own sense of importance.

Non-expletives are too mild to express my disdain with the closed-mindedness on this whole saga.

Anonymous said...

Lawrie's strategic 5-year turnaround strategy said we should have completed the "Get Fit" cost reduction phase and now be in the "Growth" phase. The "Get Fit" phase is still going on and to be fair, this is the easy bit of his strategy. So when does the Growth phase start? It seems he has failed at the first big deal despite, according to the press, being in the pole position.

Lawrie and his direct reports invested much of their time on this deal. So who is going to get the sack for failing to win over the client? Does this mean Get Fit will now continue ever longer than planned?

Anonymous said...

Quite right, though I'd also mention the political incompetence with one government determined to pursue a half baked incoherent policy and its successor determined to pursue a scorched earth policy after the event. No one comes out well, but a lot of the finger pointers are as culpable as those at whom they point.

Anonymous said...

Anonymous has left a new comment on your post "The UK Government abandons NHS IT system":

Don't forget that Lawrie isn't financially rewarded for any kind of turnaround. His bonus clauses support either:

1. Sale of the company (or I imagine parts of it...MNS anyone?)
2. Failing and getting shown the door (with a sizeable golden goodbye)

Given all the bad press surrounding CSC, even in a 2-horse race the realistic chances of securing a major deal has to be less than 35%? Against IBM who whilst generally quite expensive, tend to have their act together, we cannot really have been the client's favourite.

Anonymous said...

Apparently yesterday a senior management figure both talked about the Allianz failure ("IBM cut its prices at the last moment to win the deal") and also, if you can believe the front of these people, had someone come along and lecture about what a stunning success the NHS project was and continues to be.

On hearing this it reminded me of that Saddam spokesman "comical Ali" who used to spout unbelievable and implausible press statements...