NHS Connecting for Healthis being
forced to terminate its
£896m contract with Fujitsu as part of the
National Programme for IT, after contract renegotiation talks
broke down.
Fujitsu, which is responsible for updating NHS IT systems across
the south of England, will now be replaced by another supplier
after
failing to strike a deal with NHS Connecting for Health.
Its work under the existing contract will continue until a new
provider is found.
An NHS CFH spokesperson said it has not been possible to reach
an agreement on the core Fujitsu contract that is acceptable to all
parties. "The NHS will therefore end the contract early by issuing
a termination notice. Work has started immediately on planning the
necessary arrangements."
Fujitsu's departure follows the
withdrawal of Accenture from NHS National Programme work after
it failed to turn a profit on its work.
Prime candidates to take over from Fujitsu are BT and CSC,
already heavily involved in the programme.
In-depth analysis of Fujitsu's contract termination >>