Category Archives: managing outsourced services

CSC criticised again in The Times

By Tony Collins

The Times has followed up its three pages of coverage of the NPfIT yesterday with an article in which the chair of the Public Accounts Committee, Labour MP Margaret Hodge, criticises one of the programme’s main suppliers CSC.

Hodge tells The Times she was surprised to learn that CSC was hoping for a revised NHS deal – worth about £2bn – after it failed to deliver fully functional software to any of 166 NHS trusts in England.

CSC has said in a filing to the US Securities and Exchange Commission that, based on events to date, it does not does not anticipate that the NHS will terminate its contract.

CSC gave a series of reasons in its SEC filing why the UK Government may retain CSC and its NPfIT contracts, though it conceded that the outcome of its talks with the Department of Health, is uncertain.

CSC also said it has cured or is in the process of curing the alleged events of default. It asserted that failures and breaches of contract on the part of NHS have caused delays and issues; and it said that if the NHS wrongfully terminated the contract on the basis of alleged material breach, CSC could recover substantial damages.

Hodge told The Times:

“Any private sector company that cares so little about the public interest that they are prepared to extract this kind of money from the public purse should not be given the right to work for the Government again.

“If they are going to take such a private sector attitude to it that they don’t give a toss about the public interest they should be treated like a cowboy builder.”

CSC says it has made a significant investment in developing systems for the NHS and has demonstrated a strong and continuing commitment to improving the quality of healthcare in England. It says it has a demonstrable track record of successful and widescale delivery to NHS within the National Programme and beyond.

The Times also reported that Christine Connelly, the Department of Health’s former CIO,  was bought a £416 first-class train ticket for a visit to a hospital at Morecambe, and was flown to San Francisco and Seattle at a business-class rate costing £8,278.80.

American “cowboys” blamed for NHS fiasco – The Times

CSC confident on £2bn deal says The Times

CSC confident on £2bn NPfIT deal says The Times

The Times reports today that CSC is confident that the Department of Health will not terminate the supplier’s contracts despite the Government’s pledge to dismantle the national programme.

The paper says that “taxpayers will foot the bill for a further £2bn on a failed NHS IT project even though the Government has already pulled the plug on it”.

It adds that the “American technology company Computer Sciences Corporation (CSC) has boasted to Wall Street that it expects an extension of its contract to provide electronic patient records despite failing to deliver a fully functional version of its software”.

In a series of articles on the NPfIT, The Times suggests that the Government is locked into CSC, at least until 2017.

“The Government’s pledge to dismantle the failed NHS programme to computerise patient records is in tatters because it cannot afford to break its contractual commitments and start a search for alternative suppliers”.

The Times quotes a CSC filing to the US Securities and Exchange Commission in November which says: “Based upon events to date, the Company does not anticipate that the NHS will terminate the contract.”

CSC, the Department of Health and the Cabinet Office are still discussing a memorandum of understanding which may end with the supplier’s cutting £764m from its NPfIT contracts, leaving about £2.1bn in place.

CSC discloses in its SEC filing that the Memorandum of Understanding anticipates that the contract term will be extended one year to June 2017 and that CSC anticipates revenue of £1.5bn to £2bn over the remaining term.

With certain amendments “ the contract remains profitable and the Company would recover its investment,” says CSC in its filing.

But MP Richard Bacon, a member of the Public Accounts Committee, has received Parliamentary replies to his questions on the costs of NPfIT deployments at University Hospitals of Morecambe Bay NHS Foundation Trust and North Bristol NHS Trust which show that the costs of installing and maintaining a system under national programme contracts are more than twice that of systems bought by trusts outside of the NPfIT.

Health Minister Simon Burns said in a reply to Bacon that the costs of a Cerner Millennium deployment at the North Bristol NHS Trust are £15.2m for deployment and an annual service charge of £2m. This brings the total cost of the Cerner system over seven years to about £29m, which is more than three times the £8.2m price of a similar deployment outside of the NPfIT at University Hospitals Bristol Foundation Trust.

At Morecambe Bay, the trust’s costs of being involved with the NPfIT (including the deployment of CSC’s Lorenzo 1.9 system) are £6.2m, according to Burns in his reply to Bacon, whereas the typical internal trust costs of deploying of a non-NPfIT system, excluding the cost of the system itself but including training, project management and additional corporate reporting tools, are about £1m-£2m.

Is the Department of Health locked into CSC?

CSC in its filing to the SEC says that the NHS, when considering its options of maintaining or terminating the contract, will “consider costs and risks that NHS may incur over and above those related to termination fees”.

These include:

– damages and costs that may be payable to CSC

– the cost of initiating and managing a public tender, procedure or procedures to obtain one or more suitable replacement suppliers

– the operational risk of switching suppliers at this stage in the contract with CSC

– the cost of alternative suppliers

– the cost of obtaining exit management services from CSC to ensure an orderly transition to one or more replacement suppliers.

In addition, said CSC in its filing, if the NHS terminated the contract for convenience, possible claims that the Company has against NHS include “claims for compensation due to delays and excess costs caused by NHS or for contractual deployment delay remedies or for costs associated with change.

If the NHS had terminated the entire contract for convenience with immediate effect at September 30, 2011, the termination fee would have been capped at approximately £430m.

CSC would also be entitled by way of termination fee to a sum to compensate for the profit that CSC would have earned over the following 12 months had the contract not been terminated.

CSC recognised in the filing, however, that the signing of a new NPfIT deal was uncertain.

Lorenzo “not right yet”

The Times quotes Dr Simon Eccles, the medical director of Connecting for Health, as saying “Lorenzo has had an extremely painful gestation. Lorenzo may yet be a great success because it is a brilliant bit of software but they haven’t got it right yet.”

In an editorial on its NPfIT investigations, The Times said that government IT failures have in common the fact that “we don’t really know who was to blame”. It says:

“Nobody took responsibility and nobody apologised. It is perhaps too much to hope that there will not be more disasters. But if there are, someone must carry the can.”

NPfIT to be dismantled – brick by brick

Why hospital IT needs airline safety culture

By Tony Collins

Earlier this month the pilots of a Boeing 787 “Dreamliner” carrying 249 passengers aborted a landing at Okayama airport in Japan when the wheels failed to deploy automatically. The pilots circled and deployed the landing gear manually.

A year ago pilots of an Airbus A380, the world’s largest passenger plane, made an emergency landing at Singapore on landing gear that they deployed using gravity, the so-called “gravity drop emergency extension system”.

In both emergencies the contingencies worked.  The planes landed safely and nobody was hurt.

Five years earlier, during tests, part of the landing gear on a pre-operational A380 failed initially to drop down using gravity.

The Teflon solution

The problem was solved, thanks in part to the use of Teflon paint (see below). Eventually the A380 was certified to carry 853 passengers.

Those who fly sometimes owe their lives to the proven and certified backup arrangements on civil aircraft. Compare this safety culture to the improvised and sometimes improvident way some health IT systems are tested and deployed.

Routinely hospital boards order the installation of information systems without proven backup arrangements and certification. Absent in health IT are the mandatory standards that underpin air safety.

When an airliner crashes investigators launch a formal inquiry and publish their findings. Improvements usually follow, if they haven’t already, which is one reason flying is so safe today.

Shutters come down when health IT fails 

When health IT implementations go wrong the effect on patients is unknown. Barts and The London NHS Trust, the Royal Free Hampstead, the Nuffield Orthopaedic Centre, Barnet and Chase Farm Hospitals NHS Trust and other trusts had failed go-lives of NPfIT patient administration systems. They have not published reports on the consequences of the incidents, and have no statutory duty to do so.

Instead of improvements triggered by a public report there may, in health IT, be an instinctive and systemic cover-up, which is within the law. Why would hospitals own up to the seriousness of any incidents brought about by IT-related confusion or chaos? And under the advice of their lawyers suppliers are unlikely to own up to weaknesses in their systems after pervasive problems.

Supplier “hold harmless” clauses

Indeed a “hold harmless” clause is said to be common in contracts between electronic health record companies and healthcare provider organisations. This clause helps to shift liability to the users of EHRs in that users are liable for adverse patient consequences that result from the use of clinical software, even if the software contains errors.

That said the supplier’s software will have been configured locally; and it’s those modifications that might have caused or contributed to incidents.

Done well, health IT implementations can improve the care and safety of patients. But after the go-live of a patient administration system Barts and The London NHS Trust lost track of thousands of patient appointments and had no idea how many were in breach of the 18-week limit for treatment after being referred by a GP. There were also delays in appointments for cancer checks.

At the Royal Free Hampstead staff found they had to cope with system crashes, delays in booking patient appointments, data missing in records and extra costs.

And an independent study of the Summary Care Records scheme by Trisha Greehalgh and her team found that electronic records can omit allergies and potentially dangerous reactions to certain combinations of drugs. Her report also found that the SCR database:

–  Omitted some medications

–  Listed ‘current’ medication the patient was not taking

–  Included indicated allergies or adverse reactions which the patient probably did not have

Electronic health records can also record wrong dosages of drugs, or the wrong drugs, or fail to provide an alert when clinical staff have come to wrongly rely on such an alert.

A study in 2005 found that Computerized Physician Order Entry systems, which were widely viewed as a way of reducing prescribing errors, could lead to double the correct doses being prescribed.

One problem of health IT in hospitals is that computer systems are introduced alongside paper where neither one nor the other is a single source of truth. This could cause mistakes analogous to the ones made in early air crashes which were caused not by technology alone but pilots not fully understanding how the systems worked and not recognising the signs and effects of systems failing to work as intended.

In air crashes the lessons are learned the hard way. In health IT the lessons from failed implementations will be learned by committed professionals. But what when a hospital boss is overly ambitious, is bowled over by unproven technology and is cajoled into a premature go-live?

In 2011, indeed in the past few months, headlines in the trade press have continued to flow when a hospital’s patient information system goes live, or when a trust reaches a critical mass of Summary Care Record uploads of patient records (although some of the SCR records may or not be accurate, and may or may not be correctly updated).

What we won’t see are headlines on any serious or even tragic consequences of the implementations. A BBC File on 4 documentary this month explained how hospital mistakes are unlikely to be exposed by coroners or inquests.

So hospital board chief executives can order new and large-scale IT systems without the fear of any tragic failure of those implementations being exposed, investigated and publicly reported on. The risk lies with the patient. Certification and regulation of health IT systems would reduce that risk.

Should health IT systems be tested as well as the A380’s landing gear? – those tests in detail

Qantas Flight 32 was carrying 466 passengers when an engine exploded. The Airbus A380 made an emergency landing at Singapore Changi Airport on 4 November 2010. The failure was the first of its kind for the four-engined A380.

Shrapnel from the exploding engine punctured part of the wing and damaged some of the systems, equipment and controls. Pilots deployed the landing gear manually, using gravity  – and it worked well. Despite many technical problems the plane landed safely.

Five years earlier, tests of a manual deployment of the A380’s landing gear failed initially. It happened in a test hangar, more than a year before the A380 received regulatory approval to carry 853 passengers.

The story of the landing gear tests is told by Channel 4 as part of a well-made documentary, “Giant of the Skies” on the construction and assembly of the A380.  Against a backdrop of delays and a budget overspend, Airbus engineers must show that if power is lost the wheels will come down on their own, using gravity.

The film shows an Airbus A380 suspended in a hangar while the undercarriage test gets underway. The undercarriage doors open under their own weight and a few seconds later the locks that hold up the outer wheels release. Two massive outer sets of four wheels each fall down through a 90-degree arc. Something goes wrong.  At about 45 degrees, one of the Michelin tyres catches on an undercarriage door which looks as if it has not opened as fully as it would have if powered electrically. Only after 16 seconds does the jammed wheel set slip free. Engineers watching the test look mortified.

Simon Sanders, head of landing gear design at Airbus, tells Channel 4: “We need to understand and find a solution.”

An engineer smeared some grease (Aeroshell 70022 from Shell, Houston) on a guide ramp where the A380’s wheels are supposed to push the door open in an emergency loss of power. This worked and the test was successful: the left-side outer landing gear doors opened under their own weight; a few seconds later the wheels fell down, also under their own weight, and this time the tyre that had jammed earlier hit the grease on the door and slid down without any delay. But a permanent solution was needed.

A month later Airbus repeated the undercarriage “gravity” test. Sanders told Channel 4: “We have applied a layer of Teflon paint which is similar to the Teflon coasting you have on non-stick flying pans. This will reduce the friction when we do the free-fall [of the undercarriage]. We are now going to perform the test to demonstrate that with this low-friction Teflon coating we have solved the problem.”

This time the A380’s chief test pilot Gérard Desbois was watching. If the wheels got struck again Desbois could refuse to accept the aircraft for its first test flight, which would mean a further delay.

The loss-of-power test began. The outer landing gear doors opened … the wheels fell down under their own weight … and jammed again. This time they freed themselves quicker than before. After some hesitation Desbois accepted the aircraft on the basis that if power were lost and the left outer landing wheels took a little longer to come down than the right outer set this would not be a problem.  The gravity free-fall backup system was further refined before the A380 went into service.

The importance of the tests was shown in 2010 when an exploding Rolls-Royce Trent 900 engine on an Airbus A380,  Qantas Flight 32 from Singapore to Sydney, caused damage to various aircraft systems including the landing gear computer which stopped working.  The pilots had to deploy the landing gear manually. The official incident report shows that all of the A380’s 22 wheels deployed fully under the gravity extension backup arrangements.

If a hospital board had been overseeing the A380’s tests back in 2005, would directors have taken the view that the test was very nearly successful, so the undercarriage could be left to prove itself in service?

For the test engineers at Airbus, safety was not a matter of choice but of regulation and certification. It is a pity that the deployment of health IT, which can affect the safety of patients, is not a matter of regulation or certification.

Links:

Oxford University Hospitals NHS Trust postpones major IT go-live.

Giant of the Skies – Channel 4 documentary on manufacture and testing of the Airbus A380

Officials pay supplier invoices – then raise purchase orders

This morning the National Audit Office has published a report that says the Equality and Human Rights Commission, in up to 35% of cases, raises its purchase order after it gets the invoice from suppliers.

It’s unlikely that any private sector company could survive if it didn’t know what it owed, didn’t know what it had bought, and had to wait for an invoice from the supplier to raise the purchase order.

Amyas Morse, the head of the NAO, says in his report today:

“While I welcome the considerable improvements that the Commission has made in its controls over procurement, there are still areas where it needs to make improvements. In particular, up to 35% of the Commission’s purchase orders are still not raised until after the Commission has received an invoice for goods and services.

“This means that Commission staff are committing funds without going through proper processes and are avoiding some of the checking processes. Consequently the Commission does not have an accurate understanding of its committed expenditure at any one point in time.

“The Chief Executive has made it clear that he takes noncompliance with these processes seriously such that in cases of repeated non-compliance delegations will be withdrawn.”

A common practice? 

Is this absence of proper accounting worryingly common in central government and its agencies, particularly on IT contracts?

Auditors told us that in the case of NPfIT contracts they found some invoices that were paid when they came in, awaiting reconciliation with any past paperwork.

This, perhaps, ties in with the experiences of Conservative MP Richard Bacon, a member of Public Accounts Committee who, when asking civil servants for a breakdown of IT spending has, in the past, been referred to the department’s IT supplier.

On the C-Nomis IT project for prisons, the National Offender Management Service paid £161m without keeping any record of what the payments were for.

The Cabinet Office wants to cut the £17bn or so spent every year on public sector IT. But before departments, agencies and other organisations cut their costs they’ll need to know what those costs are. Maybe they should ask their major IT suppliers? We wonder if the domination of GovIT by a small number of suppliers has got to the stage where it’s the suppliers managing the civil service IT budgets. If that’s the case it is not the fault of suppliers.

Government CIO to retire

By Tony Collins

CIO reports today that Joe Harley, the Government CIO and CIO for the Department for Work and Pensions (DWP), is retiring next year.

Harley has been CIO for the DWP for seven years and just last year was promoted to Government CIO.

The DWP says on its website:

“After more than seven years of major accomplishments as CIO for the DWP and one year as the Government CIO, Joe Harley, CBE, has decided to retire from the Civil Service in the Spring of 2012.

“Joe has transformed IT in the Department which has made a huge difference to the efficiency and effectiveness of IT and of the DWP as a whole.”

Work and Pensions Secretary Iain Duncan Smith said:

“I would like to thank Joe for his significant and exceptional contribution to DWP and the Government – he has been instrumental in building reform and modernising our approach to technology.

“Joe leaves us with our highest regards having secured this Government well-placed to deliver major reform in the future.”

Harley said:

“It’s been a great honour and a privilege to have served the Department and Government over the years. It’s been a hugely fulfilling experience. I am proud to have made some contribution to improving Public Services for the benefit of the citizen and the tax payer.”

DWP Permanent Secretary Robert Devereux said:

“I want to thank Joe for his enormous contribution to the Department’s performance. He has been pivotal in establishing commercial arrangements which give value for money, and in the delivery of major changes to IT underpinning services which are critical for millions of people every day. The IT for Universal Credit, in particular, is on track. I wish him well in his retirement.”

Cabinet Office Permanent Secretary Ian Watmore said:

“Joe has accomplished great things in his time as Government CIO, having created and published a transformational ICT Strategy, along with plans of how it will be implemented.

“I would like to thank him personally for his leadership and huge contribution to Public Service and the ICT Profession across Government.”

Minister for Cabinet Office Francis Maude said:

“Joe has played an integral role in the past year whilst as Government CIO – he has led the delivery of a new ICT strategy and strategic implementation plan.

“These will ensure that the old siloed way of developing government ICT projects comes to an end, and leaves us with all departments working together to produce a fit-for-purpose and cost effective ICT system potentially saving £1.4 billion over the next 4 years.”

The process for selecting his successor, as CIO for DWP, will begin immediately. The Cabinet Office will run a separate process for the next Government CIO along with the process that is already underway to replace Bill McCluggage, the Deputy Government CIO.

Comment

Joe Harley has achieved much within the DWP – including cutting costs and helping to set up the administration, based on agile principles, of Universal Credit .

But it was always going to be difficult combining a full-time job as DWP CIO with that of Government CIO.

Harley’s retirement gives the government a chance to appoint a full-time CIO who is passionate about structural change and can build a strong public profile on the need for it.

Do councils have the management capacity to adopt a mutuals approach?

By David Bicknell

There is more evidence of interest in mutuals in this article from Personnel Today.

It makes some good points, notably that cash-strapped councils may lack the management resource to nurture mutuals.

Peter Reilly, the Institute of Employment Studies’ director of HR research and consultancy, who is quoted in the article, detects a division in local government between those willing to experiment with the mutuals option and those who still need convincing. “I think you have got a much bigger number of councils watching and waiting to see what comes of it,” he says. He questions whether or not councils have the management capacity to undertake such a change “if you are also trying to take out 25% of your costs at the same time”.

It is a view backed by Councillor Steve Reed, leader of Labour-controlled Lambeth Council in London, who told Personnel Today, “It’s a huge ask of the organisation, if I am honest,” he says. “We’re dealing with cuts bigger than managers have ever dealt with in their lives and then you ask them to manage in a completely different way.”

UK GovIT often a barrier not enabler says Cabinet Office official

By Tony Collins

In an interview for UKauthority.com Chris Chant, Executive Director at the Cabinet Office and head of the G-Cloud programme,  debunks the claims of some that GovIT doing a great job and should remain largely untouched.

Chant says: “IT is supposed to be an enabler. Quite often in my experience in government IT it is actually a barrier to getting things done. That’s no way to use IT. It is supposed to support what we do.”

His criticism puts into context claims by some in the civil service that GovIT is an unpublicised success because of the ease and success of online re-taxing of vehicles, the payment of benefits to millions of people and the collection of taxes.

Chant has made clear his concern that some departments are locked into major IT suppliers through costly, inflexible long-term contracts that, in some cases, are being signed anew.

“In the main we are not delivering good quality IT to government and public sector workers. We are not delivering good IT solutions to the citizen …”

He calls for internal change and describes SMEs as “front and centre to what we need”.

“It is with SMEs that agility and innovation lie, and it is that market we are really encouraging… Good IT is not developed by spending a long time trying to work out a definitive answer, and then taking ages over delivering it only to discover it is not what we needed in the first place. It is about iteration. I have said all along that we do not have all the answers. We will develop as we go and take SMEs with us.”

Asked whether the public sector is ready for the cloud Chant replies: “No we are not. We are quite a way from that… We are very well positioned to operate in a world where our IT is delivered by multinationals but now it is a different world.”

He says that the cloud has security limitations. “It is difficult to see the cloud in the short term handling some of the higher security aspects of what we do but for a lot of what government does it’s about commodity products and we need to get people in who know how to handle that.”

The focus he says must always be on the citizen – assumptions should not start from a departmental or systems standpoint. “We will need to change the way we do things; we will need some new people and I suspect a lot of retraining. I think we will need a lot fewer people working on the client side of government IT…

“We are in really tough times and the idea that we can operate with [current] cost levels is wrong…”

Government clouds take shape – UKauthority.com.

The unavoidable truths about GovIT – Chris Chant.

Vested interests will try to stop GovIT changing.

What exactly is HM Revenue and Customs paying Capgemini billions for?

DWP signs new large contracts with HP, Accenture, IBM and Capgemini.

What exactly is HMRC paying Capgemini billions for?

By Tony Collins

When the National Audit Office published a largely-positive report on HMRC and its online filing systems last month, the department received some justifiably good media coverage.

What was little noticed was that auditors were unable to get a breakdown of what HMRC is paying its “Aspire” systems suppliers Capgemini and Fujitsu for online filing.

Collect your car after a service and your bill has a breakdown of the parts used, their cost, and the cost of labour. But when HMRC pays around £8bn to Capgemini for its Aspire IT service, a clear breakdown of costs is not provided.

Says the NAO report:  HM Revenue & Customs – The expansion of online filing of tax returns:

“HMRC has a high-level view of the overall costs of ICT provision through the ASPIRE contract. It has been taking steps to improve that information and achieve cost savings. It does not yet have a detailed breakdown of the costs of online filing services, so it cannot benchmark those costs to assess their value for money.

“HMRC is currently negotiating with the ASPIRE contractors to obtain a clearer breakdown of the costs of ICT services provided.”

In case you think the NAO has made a mistake, and that HMRC must surely have a breakdown of the costs of Capgemini’s services, the NAO makes it completely clear that the Department has no such breakdown.

“The ASPIRE contract includes a rolling programme of benchmarking the prices HMRC pays for the various contracted services, including those relevant to online filing … Since 2010, HMRC has introduced new processes to improve information on the cost and use of ICT and benchmarking of key ICT service lines. These processes cannot yet provide information in sufficient detail to benchmark and challenge the cost of individual online filing services…”

Unfortunately for taxpayers it is not unusual for a department to pay its main IT supplier without having a full breakdown of the bills.

Several years ago the Conservative MP Richard Bacon asked criminal justice officials for a breakdown of costs on the “Libra” contract for magistrates’ courts IT. The Department didn’t know. So it referred Bacon to Fujitsu, Libra’s main supplier.

Fujitsu eventually provided a breakdown so vague – with high-level categories such as “network services” – that Bacon had little choice but to ask the same questions repeatedly to find out how public funds were being spent with Fujitsu.

In the end Bacon failed – and he had little support from departmental officials.

Now, about 10 years on, Capgemini is keeping HMRC in a similar level of ignorance.

Can any department be trusted with the public funds to pay its IT suppliers billions of pounds without a clear and unambiguous breakdown of what it is paying for?

A supplier’s reluctance to supply a breakdown of costs is understandable.  A clear breakdown could clear a path through the fog of supplier pricing, so it could make price comparisons easier.

It is up to HMRC to insist on a breakdown.  Its IT services have been outsourced since 1994. Shouldn’t it know exactly what it is paying billions for by now?

Chris Chant, an Executive Director in the Cabinet Office, has deplored the high costs of locked-in long-term contracts with out-of-season monolithic suppliers.  Does the Aspire contract alone make a good case for the reform of central government?

The unavoidable truths about GovIT – Chris Chant.

Where is the Government CIO?

By Tony Collins

Joe Harley, Government CIO

Joe Harley, the government CIO, is much respected inside and outside of government.

Amiable, straight-talking and influential, he could be the Government’s civil service ambassador for change.  Like his predecessor John Suffolk he could use conferences and public events to talk inspirationally about the dystopian costs of government IT and what to do about them. He could jolt the complacent into an awareness of their self-deceptions.

Why hasn’t he? If the Government CIO has much to say  is not for the public ear.  While there has been talk in recent weeks of how five corporations control GovIT, and how it can cost up to £50,000 to change a line of code, Harley has been silent.

Where does the Government CIO stand on the need for major reform of the machinery of government, on the sensible risks that could save billions?

Is the top man in Government IT inspiring his colleagues and officials in other departments to do things differently?

It’s true that Joe Harley has enough to do – perhaps too much – in his “other” day job as CIO and Director General of Corporate IT,  Department for Work and Pensions (DWP).

He is a leader of the programme that is helping to deliver Universal Credit. He chairs the public sector-wide CIO Council; and his trying to do more with a smaller budget will require all the skill and the experience he acquired as global CIO for ICI Paints and before that as BP’s IT Vice President for global applications, hosting and consultancy.

These responsibilities give Harley a chance to point to a new way, to confront unequivocally the costs of GovIT, to lead by example: by replacing gradually the long-term contracts and monolithlic suppliers of old; by listening to SMEs and employing them directly, and in more than a token capacity.

What has happened is the opposite. HP, Accenture, IBM and CapGemini are safe in his hands.

The DWP has recently awarded those suppliers new and conventionally-large, long-term contracts. Headlines in the past two months hint at how the DWP will, for years to come, dance to the tune of its large IT suppliers:

“DWP signs fifth large deal with HP”

“DWP awards Accenture seven year application services deal”

“DWP awards IT deals to IBM and Capgemini”

These deals could be seen as a protest against all that Francis Maude, Minister for the Cabinet Office, stands for.

In March Maude spoke of a need for big contracts to be broken down into “smaller, more flexible projects” which would “open up the market to SMEs and new providers”. Maude wants to end the oligopoly of big GovIT suppliers – but does he have an influence at the DWP?

Nobody is suggesting that Harley shows a hard fist at the negotiating table. But he should assert himself sufficiently in public to make us believe that his appointment as Government CIO was more than the filling of a vacuum.

He doesn’t need to lead by radiating charisma; but can you inspire from the shadows?  Billions is spent unnecessarily each year on not changing the government administration. So it’s time Harley advocated change.  He could be a standing reproach to the myth that senior civil servants do all in their power to obstruct change.

Deposing the muscular monoliths in the supplier community will require a consuming interest in innovation, courage (risk-taking) and a passion to cut costs. Harley has many strengths and qualities. Surely these are among them. But if they’re not manifest soon, some in government will wonder if the Government CIO has gone missing.

Links:

DWP awards 7-year deal worth up to £350m to Accenture

DWP signs fifth large deal with HP

DWP awards deals to IBM and Capgemini

DWP signs big contracts with IBM and Capgemini