Business
Great Britain replaces IT vendor
NEWS IN BRIEF — Posted Oct. 23, 2006
The United Kingdom's National Health Service announced Sept. 28 that it awarded a nine-year, $3.7 billion contract to build part of its $11 billion national health information network to Computer Sciences Corp., which will replace Accenture Ltd.
New York-based Accenture and El Segundo, Calif.-based CSC, are two of four companies the British government hired in 2003 to design and implement a national network for Great Britain. The four companies were awarded multiyear contracts to automate five regions of Britain, with Accenture holding contracts covering two regions and the other vendors one region each. With Britain turning over Accenture's part of the project to CSC, the CSC now will automate three regions.
Although Britain's project has made progress, it also has experienced several delays since its inception because vendors have had trouble meeting project deadlines. Last year, for example, Accenture announced that it would post a $450 million loss on its two contracts, which only pay vendors when they deliver systems that work.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2006/10/23/bibf1023.htm.
