Accenture takes NHS hit

Consultancy Accenture is losing tens of millions of pounds from its current NHS IT contracts, and does not expect to start making...

Consultancy Accenture is losing tens of millions of pounds from its current NHS IT contracts, and does not expect to start making any cash from them until 2007.

In the second quarter Accenture reported a £13.3m loss on its NHS work, which is part of the Government’s £2.3bn National Programme for IT for the NHS.

This loss comes on top of the loss made in the first quarter, with Accenture saying the NHS work has cost it £21.1m for the first six months. And the company says full year losses may reach up to £83.3m.

Accenture said the losses will continue throughout 2006, and that the firm will make nothing until 2007.

Although Accenture’s overall group sales and profits were up for the second quarter, it said its margins were affected by the poor NHS performance. It said delays in deployments had delayed payments.

Ovum analyst Douglas Hayward said, “This is a real warning to other companies involved in the National
Programme for IT.

“Richard Granger, the NHS IT chief, is still playing hardball and is clearly only prepared to pay when he feels the service is truly delivered. Is Accenture the last to be in this position? I doubt it.”

Read more on IT legislation and regulation

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

SearchCIO

SearchSecurity

SearchNetworking

SearchDataCenter

SearchDataManagement

Close