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CSC Chief Executive positive about NPfIT despite "political rhetoric"

CSC CEO Mike Laphen is interviewed by Publictechnology.net. He’s positive about the NPfIT and about the outcome of negotiations between the Department of Health, CSC and BT to cut costs from the NHS IT programme.

“The [UK] government has publicly said that they would liketo reduce the programme – the total programme not just our piece butall the vendors’ piece  – as well as the internal spend by about £600million pounds over the life of the programme. We are working with themon a portion of that.

“I think we are you would say it’s a veryconstructive engagement and at the end of the day I think we are goingto work something out that satisfies their needs as well as ours. So,and that’s the way we born into this. So we recognise that they needsome fiscal savings and they realise that we’ve made investments andcommitments [to] buying at the start of this contract, so I think it’sgoing to be a constructive outcome.”

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What’snot clear is how much CSC will gain financially by having commitmentstaken out of its NPfIT contract. And will the renegotiation ofcontracts to diminish what’s due to be delivered under the NPfIT leavethe programme more emaciated than it already is?

Links:

NHS IT supplier iSoft reports profits down – IT Projects Blog

Is the NPfIT running out of money? – IT Projects Blog

“I plan to opt out of Summary Care Record” – amuchmoreexotic’s journal 

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How interesting that CSC can see only good coming from its biggest and most profitable client anywhere in world reducing the scale of business. That might explain why CSC talked up US based health contracts, that are tiddlers compared to NPfIT, and hardly mentioned NHS when given the opportunity to speak about CSC at Davos recently.

My take from this is that CSC are down playing NPfIT in public announcements and making a lot of whatever business they capture elsewhere. But with a PE at 9:1 and limited growth they'll need a better story and some real business action to impress investors and customers alike. [edited]

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