NHS settles £90m e-mail service dispute with EDS

The NHS has settled its dispute with EDS over the cancellation of a £90m e-mail and directory services (EMDS) contract.

The NHS has settled its dispute with EDS over the cancellation of a £90m e-mail and directory services (EMDS) contract.

The NHS cancelled the £90m contract with EDS in early March, citing low take up of the service. EDS then threatened legal action. The two sides reached a settlement with the help of the Centre for Effective Dispute Resolution (CEDR), was "without any attribution of blame to either party".

Terms of any financial settlement are commercially confidential and will not be disclosed, said the two sides.

Cable & Wireless is set to take over the contract but EDS will continue to provide the EMDS service, until it does so.
 
The NHS EMDS is one of the programmes being delivered by the National Programme for Information Technology in the NHS.
 
The EMDS can be accessed securely from both NHSnet and the internet, and offers NHS staff an e-mail address for the lifetime of their work with the NHS, plus entry to a central directory.

Additional facilities include email-to-fax, SMS text messaging and an online calendar, for managing time, tasks and resources, within and across NHS organisations.

The NHS-EDS settlement comes two weeks after the Cabinet Office cancelled an £83m datacentre contract with ITNet. 

The Cabinet Office said the IT services company had delivered none of the services due under the contract, but this was disputed by ITNet, which is now considering legal action for reimbursement for a £15.2m outlay for datacentre assets and £10m spent on implementation.

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