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Public sector IT contract spending out of control
Posted Feb 2, 2009
A national paper has revealed that some of the Government's biggest IT project costs have spiralled completely out of control.
The Times estimates that the the cost of over-running public sector IT projects has breached the £18bn level. This is the estimated difference between the original IT project estimates, and reality.
Although overruns are commonplace, as all IT contractors know, the sheer scale of overspending on Government IT projects over the last decade really is breathtaking.
Examples of some of the costliest projects include one to link up all MoD databases which is £1.3bn over budget, and the HMRC tax credit system which was estimated to cost £2.9bn and has risen to £8.5bn.
Perhaps the most controversial project is one to computerise all patient medical records. The project has been frought with problems since its inception. Not only is the project several years behind schedule, there have also been fears over the confidentiality of patient records. Fujitsu withdrew from the project last year, and The Times suggests that the current suppliers (including BT) might also walk away.
This particular project could be as must as £10bn over budget.
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