Cabinet Office officials have blasted attempts by the Department of Health to sign an “unattractive” multibillion pound renewal deal with troubled NHS IT provider CSC. A leaked memo, seen by Computerworld UK shows CSC is attempting to secure a renewal to its £3.1 billion contract, by offering a “further” £264 million cut to the price, possibly in addition to £400 million already set to be cut.
In spite of the relatively small proportion cut in cost, CSC would potentially slash two-thirds of the work it would have to do by delivering to only 80 out of the 220 trusts originally contracted for, and would take a year longer to do so. The change “roughly doubles the cost of each deployment”, said the memo. “Ultimately, we are not convinced the [Department of] Health commercial team are approaching this in the right way.”