Talks between the government and CSC have fallen through once again and a resolution over the National Programme for IT (NPfIT) has not been reached.
CSC was lambasted last year by MPs on the Public Accounts Committee (PAC) after it was revealed that the IT services company had only delivered a full patient administration system to just three trusts in nine years. CSC may have to write off the entire £957 million investment it made in the programme.
The deadline to reach an agreement over NPfIT was extended in April until 1 June, but has now been extended again until 31 August after unsuccessful talks regarding contract scope modifications and value reductions.
In a filing to the US Securities and Exchange Commission (SEC), CSC also stated that despite the new extension to the deadline, “there can be no assurance that CSC and NHS will enter into the interim agreement or any amendment the existing agreement”.
This is the latest in a stream of difficult announcements for CSC, where last week it was revealed that it had intentionally exaggerated its income from the NPfIT by £15.5 million and it was under investigation by Her Majesty’s Revenue and Customs (HMRC).
It has also made some 1,140 job cuts in the UK since February, 500 of which were directly a result of the failed £12.7 billion NPfIT.
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