Sir Philip Green’s report about government waste not unsurprisingly focussed quite a lot on IT.
With the government spending review around the corner the report outlined one particularly wasteful IT contract.
Here, in bold, is what he said about it:
“Six years remaining on a long term IT contract of more than £100m per annum
This is a contract for provision of hardware and software development. The principal contractor subcontracts the majority of work to another major supplier. Therefore there are two profit margins.
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Work is charged for at a rate of more than £1,000 per person per day, which is well in excess of market rates.
It is a poor quality contract with no provision in the contract to reduce the annual amount payable should the development work not be required.
This contract includes services that are no longer required. There should have been an optional element written into the contract.”
I was trying to find out which contract he is referring to. But the response I have been given by all my contacts so far is that “this could be one of many.”
Anyone got any ideas or even a list of contracts that fit this description?