Category Archives: outsourcing

All change for police IT – again?

By Tony Collins

Police IT is supposed to have undergone a transformation over the past 13 years, thanks in part to a Home Office national police IT programme called NSPIS – for which Securicor Information Systems was awarded contracts worth more than £140m.

NSPIS contracts awarded in 1999 included:

– Case preparation: acquisition and delivery of forms, photographs, police reports, statements and other materials required in court for trying cases.

– Custody: booking in, tracking and monitoring of individuals held in police cells.

– Command and control: coordination and management of police operations.

– Crime: analysis of case histories and crime statistics.

With some reluctance, dozens of police forces took NSPIS systems with mixed success. The national transformation did not happen, though large sums were spent. NSPIS [National Strategy for Police Information Systems] was followed by another national IT-led transformation programme ISIS [Information Systems Improvement Strategy].

Now the government plans another police IT-led transformation. It is setting up a new company to improve police IT [as if the last so-called transformation programmes had not existed].

In a joint statement, the Home Office and the Association of Police Authorities say the new company will give strategic ICT advice to forces and procure, implement and manage ICT solutions for forces.

The company will “help police forces to improve their information technology and get better value for money from contracts”.

The police ICT company Ltd is now owned by the Association of Police Authorities and the Home Office but will be handed over to police and crime commissioners following elections in November.

In setting up the company Nick Herbert, the policing minister, says

“While some police IT is good, such as the new Police National Database, much of it is not.  There are 2,000 systems between the 43 forces of England and Wales, and individual forces have not always driven the most effective deals.

“We need a new, more collaborative approach and greater accountability, utilising expertise in IT procurement and freeing police officers to focus on fighting crime.

“By harnessing the purchasing power of police forces, the new company will be able to drive down costs, save taxpayers’ money, and help to improve police and potentially wider criminal justice IT systems in future.”

Chairman of the Association of Police Authorities Councillor Mark Burns-Williamson says that when the new company is handed over to police and crime commissioners “we want it to be fit for purpose and efficient in delivering IT tasks”.

The aim of the new company, says the Home Office and the Association of Police Authorities, is to “free chief officers from in-depth involvement in ICT management and enable greater innovation so officers have access to new technology to save time and ensure better value for the taxpayer”.

Police IT in a poor state?

UKAuthority.com reports that Tom Winsor, the new chief inspector of police, is “staggered” at the ineffectiveness of police IT.

Giving evidence to MPs he said

“I was staggered when I did my field work, in the police pay review, at just how low-tech the technology of the police is in volume crime and so on. It is extraordinary. They have computer screens that resemble those that we saw in the early 1980s. I mentioned the police officers doing their own two-finger typing and so on.

“It is the most extraordinarily archaic system. I think it is part of HMIC‘s role to expose inefficiency – and that surely is massively inefficient.”

Winsor said he had watched police officers standing in a queue for up to four hours at a time to book in a suspect. The private sector would not tolerate such delays, and would quickly change the system, he said.

Comment

With 43 forces buying their own IT it seemed sensible for the Home Office to try and introduce national systems.  As Neil Howell, the then IT Director at Hampshire Police Authority, said in March 2006, there was “political pressure to take up some systems – e.g. NSPIS Case and Custody ” but some national systems did not “match current level of functionality or requirements …”

In the NHS, several national IT-led transformation programmes preceded the NPfIT, but nobody in power wanted to know about the past when NPfIT was launched in 2003.

An extraordinary effort – and money – went into NSPIS  but police forces resented being told what to buy and in general were happy with own IT choices. Many were particularly happy with NSPIS rival systems from Canadian company Niche.

Perhaps the Home Office should accept that, apart from natural national systems such as the  Police National Database, Automated Numberplate Recognition, and the “Impact” intelligence sharing system, police IT is too complicated to be done nationally.

Mandating rarely works

Mandation rarely if ever works in the public sector. The Home Office and its agents cannot tell 43 autonomous police forces what technology to buy and implement.  Public bodies can, and do, circumvent mandation, sometimes by simply ignoring it, as National Audit Office reports point out.

The Department of Health  tried to tell trusts what to buy under the NPfIT and that didn’t work. Like police forces NHS trusts are largely autonomous.

Governments don’t have memories when it comes to failed IT-led transformation programmes. It may be good for civil servants and suppliers to learn new skills and experiment with IT on recycled transformation programmes.

But should suppliers learn at the expense of taxpayers? And should new ministers and civil servants keep launching new and exciting IT-led transformation programmes that fail as miserably as the last – giving excuses for a replacement set of ministers and civil servants to renew the cycle?

The Department of Health has finally learnt that what’s needed before the launch of any major  IT-led initiative is a frank appraisal of what has gone wrong in the past, and what can be learnt.  The DH achieves this in the “Impact Assessment” section of its latest IT strategy.  It’s not beyond the wit of police forces, the Home Office and the Association of Police Authorities to follow the DH’s example.

Unless they do, perhaps David Pitchford’s Major Projects Authority at the Cabinet Office should think twice before allowing large sums to be spent on new police IT.

Joint statement of Home Office and Association of Police Authorities

Timetable for HMRC’s work on Universal Credit is “challenging” says NAO

By Tony Collins

Today’s report of the National Audit Office on the accounts of HMRC is, perhaps diplomatically, silent on the performance of HMRC’s work so far on Universal Credit, other than to say the timetable for roll-out beginning in October next year is “challenging”.

There have been internal assessments of HMRC’s “Real Time Information” [RTI] project, on which the success of Universal Credit is dependent, but none has been published other than the “Starting Gate”.

Today’s NAO report on HMRC says the “timetable for implementation of RTI is challenging”. It adds:

“The Department for Work and Pension’s timetable to implement Universal Credit is driving the timetable to roll-out RTI. The Department for Work and Pensions requires real time PAYE information on employment and pension income to award and adjust Universal Credit.

“It is rolling out Universal Credit from October 2013 to 2017. All employers and pension providers need to be using RTI by October 2013 to meet this timetable.

“The Department met its milestone to start its RTI pilot in April 2012 with ten employers. By July 2012, it expects a further 310 employers will be using RTI. At 31 May 2012, 209 PAYE schemes covering 1.5 million individual records were using RTI.”

NAO report on HMRC’s 2011/12 accounts

HMRC still plagued by IT problems.

Time for truth on Universal Credit

HMRC “still plagued by IT problems”

By Tony Collins

HMRC has one of the biggest IT outsourcing contracts in central government, a deal worth about £8bn with Capgemini, which began in 2004. Before that, between 1994 and 2004, the main IT supplier was EDS, now HP. But HMRC has had pervasive IT-related challenges for more than a decade.

Today Margaret Hodge, Chair of the Committee of Public Accounts, commented   on a report by the National Audit Office on HM Revenue & Customs’ 2011-12 accounts.

“Sadly it is no surprise that the NAO has found substantial problems with the HMRC’s accounts. This year has seen a litany of tax errors and scandals come to light with mistakes made at the most senior level from the Permanent Secretary for Tax downwards.

“The sheer scale of waste and mismanagement at HMRC never ceases to shock me. Without even mentioning the tax gap, in 2011-12 the Department wrote off a staggering £5.2 billion of tax owed, overpaid nearly £2.5 billion in tax credits due to fraud and error and underpaid around £290 million.

“In some areas the Department is moving in the right direction and has made progress to implement improvement plans. But the Department is still plagued by IT problems; limiting, for example, its ability to link together the debts owed by tax payers across different tax streams.

“With its long history of large scale IT failures, the Department needs to get a grip before it introduces its new real time PAYE information systems and begins the high-risk move from tax credits to the Universal Credit.”

Timetable for HMRC’s work on Universal Credit is “challenging” says NAO.

NAO – HMRC’s 2011/12 accounts

Time for truth on Universal Credit.

Poor IT suppliers to face ban from contracts?

By Tony Collins

The Cabinet Office minister Francis Maude is due to meet representatives of suppliers today, including  Accenture BT,Capgemini, Capita, HP, IBM, Interserve, Logica, Serco, and Steria.

They will be warned that suppliers with poor performance may find it more difficult to secure new work with the Government. The Cabinet Office says that formal information on a supplier’s performance will be available and will be taken into consideration at the start of and during the procurement process (pre-contract).

Maude will tell them that the Government is strengthening its supplier management by monitoring suppliers’ performance for the Crown as a whole.

“I want Whitehall procurement to become as sharp as the best businesses”, says Maude. “Today I will tell companies that we won’t tolerate poor performance and that to work with us you will have to offer the best value for money.”

The suppliers at today’s meeting represent around £15bn worth of central government contract spend.

The representatives will also be:

– asked their reactions on the government’s approach to business over the past two years

– briefed on the expanded Cabinet Office team of negotiators (Crown Representatives) from the private and public sectors. Maude says these negotiators aim to maximise the Government’s bulk buying power to obtain strategic discounts for taxpayers and end the days of lengthy and inflexible contracts.

Spending controls made permanent

Maude is announcing today that cross-Whitehall spending controls will be a permanent way of life. The Government introduced in 2010 temporary controls on spending in areas such as ICT  and consultancy. It claims £3.75bn of cash savings in 2010/11, and efficiency savings for 2011/12, which it says are being audited.

The Cabinet Office says: “By creating an overall picture of where the money is going, the controls allow government to act strategically in a way it never could before. For example, strict controls on ICT expenditure do not just reduce costs but also reveal the software, hardware and services that departments are buying and whether there is a competitive mix of suppliers and software standards across government.”

Maude said: “Our cross-Whitehall controls on spending have made billions of cash savings for the taxpayer – something that has never been done before. That’s why I’m pleased to confirm that our controls will be a permanent feature, helping to change fundamentally the way government operates.”

Natwest/RBS – what went wrong?

By Tony Collins

Outsourcing to India and losing IBM mainframe skills in the process? The failure of CA-7 batch scheduling software which had a knock-on effect on multiple feeder systems?

As RBS continues to try and clear the backlog from last week’s crash during a software upgrade, many in the IT industry are asking how it could have happened.

Stephen Hester, RBS’s boss, told the BBC today:

“In simple terms there was a software change which didn’t go right. Although that was put right quickly there then was a big backlog of things that had to be reprocessed in sequence. That got on top of our technical teams … it is like the landing path at Heathrow. Once you get out of sequence it takes a time to get back into sequence even if the original fault is put right.

“Our people are working incredibly hard … I am pleased to report that as of today RBS and Natwest systems are operating normally.

“We need to make sure they stay normal for the next few days. There is still some significant catch-up today, much less tomorrow and so on as we go through the week.”

The immediate technical cause of the problems might not have been too difficult for those inside the bank to establish – but finding out how and why it happened, why processes were not in place to stop a backlog of work building up, and why testing of the upgrade did not pre-empt the failure may take weeks and possibly months to establish.

Attributing blame could take many years. After BSkyB appointed EDS to supply a CRM system in 2000, and the project failed, it was ten years later before a court reached a judgment on blame. The cause of the failed project was never definitively established.

Official cause of system crash

The official cause of RBS/Natwest’s problems was given at the weekend by Susan Allen, Director of Customer Services, RBS Group which includes Natwest and Ulster Bank. She told Paul Lewis of BBC’s Moneybox programme:

“Earlier this week we had a problem in our overnight backup. So a piece of software failed that started all the updates that happened to our systems overnight.

“What that has meant practically is that information on customers’ accounts has not been updated… It is horrendous.

“The underlying problem has been fixed, so the computer software that failed has been replaced. That is in and working. The challenge we now have is bringing all the systems back up and working through all the data that should have been gone through over the last three nights …

“We have 12 million customers in Natwest and RBS and just over 100,000 in Ulster Bank. So it is affecting a serious number of people. It is having a terrible impact.

“We are encouraging all of our customers to call us, come and see us in our branches … we have branches open late .. and have doubled the number of people on the phone. Call centres are open 24 hours a day.”

Call centres use 0845 numbers which are chargeable for some. Lewis asked, Why are you making people pay to fix a problem that’s your fault?

“Customers should not be having to pay for those calls,”replied Allen. “If that is a problem for people we will take a look at that.”

Lewis: Will you re-imburse people for their calls?

“Absolutely. We recognise there will be lots of different expenses as a result of this. We apologise and want to make sure they are not out of pocket. If people have got claims they should put them through to us…we will need the information to deal with the claims.”

Lewis: Will you refund charges by credit card companies for late payments?

“We will. We will… we will make sure nobody is out of pocket… in one instance we got cash in a cab to a customer’s home… clearly we trust our customers so if we can see that somebody has a certain amount coming in every week we will give them money against that. So we ask people to come in and bring identification with them such as their bank card, we will do what we can to help.

“We will look after our customers. We realise this has had a huge impact on people. We are not underestimating it … clearly there are things that have gone wrong and we cannot put everything right.”

Lewis: How much damage has this done to the reputation of the bank?

“Time will tell. For us it is pretty devastating. We pride ourselves on being a bank that really cares about our customers and wants to deliver great service. We absolutely mean it.”

Lewis: Should you get a bonus?

“We only get performance bonuses when we perform and this has not been a good performance.”

Comment:

Her explanation of the cause of the IT crash is unclear but otherwise Susan Allen’s answers to Paul Lewis’s questions were exemplary. Her openness and unaffected humility is surely the best way to handle a PR crisis. Small comfort for the millions affected though.

Technical cause of the crash?

Some of those commenting to The Register appear to have a good knowledge of RBS systems. There are suggestions RBS has lost some important IBM mainframe software skills in outsourcing.

One or two have suggested that the crash was caused by a failure of the bank’s CA-7 batch scheduling software. In February RBS had an “urgent requirement” in Hyderabad, India, for people with four to seven years experience of CA7.

One comment on The Register said that RBS runs updates on customer accounts overnight on an IBM mainframe, via a number of feeder systems that include BACS. “The actual definitive customer account updates were carried out by a number of programs written in assembly language dating back to about 1969-70, and updated since then. These were also choc-full of obscure business rules … and I do not believe anyone there really knew how it all worked anymore, even back in 2001…

“Of course the moral is complex mainframe systems require staff with the skills, and in this case, the specific system knowledge to keep things smooth. The fewer of these you have, the more difficult it is to recover from problems like this.”

Robert Peston, the BBC’s Business Editor, asks whether outsourcing was to blame.

“In my conversations with RBS bankers, there is an implication that outsourcing contributed to the problems – though they won’t say whether this is an issue of basic competence or of the complexities of co-ordinating a rescue when a variety of parties are involved.”

An RBS spokesperson told The Register that the software error occurred on a UK-based piece of software.

Some lessons from the crisis – Bank of England Governor.

Are SIAMs the new SIs?

In this guest blog, John Jones and John Pendlebury-Green, co-founders of strategic sales architects Landseer Partners, take a look at the development of a new generation of outsourcing in ICT and the creation of a new breed of integration and manageement specialists dubbed ‘SIAMs’. This article is also carried on Landseer Partners’ website.

We now live in an age of austerity where we have to live within our means and this includes the Government  which has just announced the need for Departments to find a further £16bn in savings. 

All Departments and Agencies are having to make real year-on-year cuts to their budgets – effectively having to do  the same for less money for some considerable time to come.  This is leading to new models for the delivery of services (third generation outsourcing) as Government becomes more about “policy and strategy” and leaves the delivery of public services to the private sector.

Industry has already played a major part in first and second generation of outsourcing including what is now more commonly called “outcome-based contracting”. 

The recent contract awards of new prison builds and operations similar to the likes of G4S and Interserve provide exemplars of outcome-based contracting. The Work Programme Initiative at the Department of Work and Pensions is another relatively recent example of second generation outsourcing with payment linked directly to outcomes.  Lessons learned are only now emerging as to the efficacy of these contracts.

What is interesting is that now we are starting to witness a new third-generation of outsourcing in ICT – Service Integration and Management (SIAM).  The consequences for the ICT Industry and the delivery of ICT within and to Government are likely to be profound. 

At Landseer Partners, we believe that the shape and players of the ICT market will change significantly in the next two to five years.  The net effect on the role of existing System Integrators (SI) is likely to be significant.

So what is SIAM all about and, importantly, what will make SIAM a success and its implications for the big SIs?

SIAMs are the ICT Managing Agent for the Customer

So, what are SIAMs – well, for starters, there is no agreed de facto industry definition of what a SIAM is. Rather, there are emerging trends in the private sector and in the current government procurements at the Ministry of Justice (MoJ) and the Foreign and Commonwealth Office (FCO) that identify key characteristics of what Service Integrators and Management Services may look like. 

For instance, the MoJ and FCO both plan to award contracts to SIAM providers that can successfully demonstrate the ability to integrate services and manage a number of Tower service providers that (typically) provide one or more commoditised services of: data hosting, LAN/WAN provision, Applications Management and Support and some Security related services.  Importantly, the SIAMs will be characterised by:

  • Taking the risks for “end to end” delivery of the services and their continuing operations
  • Creating new commercial constructs to balance risk versus delivery
  • Not necessarily holding direct contracts with the Tower service providers
  • Providing full 24/7 service desks to support national and global needs of the customer
  • Working hand-in-glove and be contract-managed by the retained Intelligent Client Function (or Informed Partner as they are sometimes known) of the Contracting Authority

In effect, the UK public sector is now requesting what has long happened in the construction industry; they are looking to award contracts to Managing Agents to help deliver and manage critical  ICT services back to Departments/Agencies.

Expected Benefits

So, with the advent of SIAMs  what are the expected benefits?  Reading the prospectuses of the government procurements we would expect the benefits to be large and varied and include:

  • Reduced cost of ICT services to the commissioning Department/Agency – this might come about by greater efficiencies in programme delivery; but significant cash savings are also expected as staff are transferred move to more cost-effective private sector pensions schemes
  • Better risk management with continuous incentives to improve service quality to users
  • Greater innovation by the SIAMs, possibly by the use of niche SMEs which will assist with more agile delivery and innovation methods

The Future

Given the real lack of experience and reliable data on the likely impact of the creation of SIAMs it is difficult to say at this particular time whether SIAMs will effective in the longer term]– will SIAMs be effective in the longer term?  Will they help to drive down cost of ICT services?  Will they help in the delivery of better public services?

Landseer Partners’s view is that, although it is early days, SIAMs are likely to be here to stay, at least in the foreseeable future. The status quo, keeping large in-house Intelligent Customer Functions and Service Desk provision, is  neither desirable nor efficient and future procurements will build on the lessons learned from the current MoJ and FCO procurements.

The key thing now is for System Integrators to recognise that change is in the air, that different business models are appearing and that, to be in the market, a change in attitude, behaviours and delivery will be needed in order to become Service Integrators and Managing Agents to Government.

The story behind India’s struggling Aakash IT project

By David Bicknell

The New York Times has carried a couple of excellent blog posts reporting on India’s struggling “Aakash” IT project.

The India Ink posts detail the story behind a plan to introduce a cheap computer built for Indian students. As the blog explains, last October, the Indian Ministry of Human Resources Development unveiled the new, $35 computer.

Now, more than six months later, with thousands of university students still waiting for the laptop, “the tale of the Aakash looks a bit like an Indian soap opera, complete with a convoluted storyline, multiple characters, and massive personality clashes.”

As India Ink says, the Aakash project, if successfully completed, could enable millions of students to connect with the larger digital world, and is being closely watched outside India as the national government tries to attract foreign investment in public-private partnerships for everything from infrastructure to vocational training.

“The original idea behind the Aakash seemed pleasantly simple. A cheap computer would benefit Indian university students by enabling them to watch lectures or get lecture notes and other class information online. In 2009, a team of government researchers developed the basic design for the low cost device.

“The job of putting the project out to bid fell to I.I.T. Rajasthan, which by spring of 2011 had received 477 million rupees — about $9.2 million — in government funds to pay for procuring and testing 100,000 low-cost tablets. In writing the tender, I.I.T. Rajasthan detailed the technical specifications for the tablet but did not specify the criteria for testing and approving the devices, according to a government source involved in the project. That omission was to prove disastrous.

Here is Part One of the tangled tale of the project, which involves issues with procurement, outsourcing, testing and governance.

And here is Part Two.

India’s $35 Aakash tablet comes apart
Aakash Tablet Problems: India’s $35 slate slammed by testers

How do you create successful software development teams? (Part 2: Outsourcing)

By David Bicknell

I recently reported on a roundtable organised by the Dutch software specialist Software Improvement Group (SIG) which set out to determine what makes successful teams in software development.

The roundtable featured two specialists in creating specialist teams: Andrew de la Haye, chief operating officer, at RIPE Network Co-ordination Centre (RIPE NCC), one of five Regional Internet Registries (RIRs) providing Internet resource allocations, registration services and coordination activities that support the operation of the Internet globally; and author and management expert Kevan Hall, chief executive of Global Integration.

In Part One of the discussion, which focused on creating excellent teams in software development, we examined teamwork, Agile empowerment, a commitment to quality, remote working and getting the right level of teamwork.

In this part of the discussion, we focused on managing multi-disciplinary teams, structure, reducing waste, and outsourcing.

Managing multi-disciplinary teams

Kevan Hall pointed out that when you’re working in a multi-disciplinary environment – for example, if you’re building a very complex piece of kit with tens of thousands of bits – there is a point at which you need to have some co-ordination.

But he added, “There is also a big part of the work where I’m an engineer off doing actual work or I’m somewhere writing code. And that’s not teamwork.  If we have this mentality that everything we do is a team, then we can’t make a decision until the next meeting. I distinguish between a team, which is kind of truly interdependent i.e. if you’ve got multi-disciplinary skills, R&D etc,  you really need to work collaboratively, tightly, and you can’t do it on your own, you need teamwork. But most work isn’t like that: most work is me doing my stuff.

“And therefore a simple hub and spoke group of organisations might be much simpler to do that. When you’re working globally, or virtually, that’s much, much easier because in a hub and spoke structure, if I want to talk to you, I just pick up the phone.  If I’m in a team, I have to go into all your Outlook diaries and hope that in the next month, you’ve got some time where we can at least all get on the phone.

“So hub and spoke is much simpler for virtual teams and for remoteness and those kind of things. So when we are  working collaboratively that’s when we really need to focus because it’s really expensive and quite hard to do.”

Waste reduction and communication

Andrew de la Haye from RIPE explained the need for what he describes as ‘waste reduction.’

“One of the things we do as standard culture in our software teams is every three to four months we do waste reduction sessions. So in the old methodology, you do retrospectives. You start a sprint – a sprint is two weeks – you deliver to the business, and after that, the team sits together and then they discuss what went well and what should be improved in the next sprint. And as a larger group in the whole department, we get them together once every four months for an hour or two at the most and we say, ‘OK. Where is waste? Where do we see waste?”

“And most of the time it is not coding or the real work they do, most of the time it is in the communications area.  And we try to get rid of it. So we changed the team from 2 x 6 to 3 x 4 people. It’s just part of our being to look at the waste we created after the last period and where can we improve. And they became  much more efficient and effective.”

According to Kevan Hall, one of the things you often see with teams is the ‘community decay curve’.

“When you have a team, virtual or not, you have a kick off and everyone’s very enthusiastic. And then you start doing the work, and it’s quite hard. And then you come to the end of something and you’ve succeeded and you have a celebration. Successful virtual teams create a rhythm. For our teams, it’s a year. You have a long old slog and there is a ‘periodicity’ of communication. A software team is perfect because you have a closure, a learning opportunity, a celebration and then you go and do it again. If it’s longer than that, then you have to think about other things that are going to have an impact, like a conference call or a coaching call.

“Even worse, if you’re managing a remote organisation or a remote supplier, the risk is that you only call them when you need something or you’ve got a problem. So they don’t really look forward to your next call. ‘Oh, no. Look who’s on the phone.’ You demotivate people just by your number coming up. It’s about keeping that rhythm. It’s a bit like an ECG. You’ve got to create those peaks to keep motivation high.

“Social media has a very powerful role to play in virtual teams, because it’s much easier to share the other things that I’m doing rather than just project updates. I also like Instant Messenger because if you have people in Asia you can see that they’re ‘on’ and to me it’s just like passing someone in the corridor. It’s the virtual coffee machine. Occasionally, people will see say, ‘If you’re there, can we have a quick call?’ And it’s another part of the rhythm for me – like keeping the heartbeat going.”

Outsourcing

“I used to sell a lot of outsourcing,” said Andrew de la Haye. “But I haven’t seen it really working (teamwise). One of the issues with outsourcing is the commitment bit, which is very important in my teams. My people are committed to me because they know me, and they know what the company stands for. If you outsource to somebody, who are they committed to? You hope that they are committed to the organisation they’re working for, but they’re certainly not committed to you. And they are probably more committed to themselves, especially in India because people move around like crazy.

“So one of the issues with outsourcing is the lack of commitment, I think. I don’t see a solution to that. There are two ways of outsourcing: outsourcing commodity items, where there is a new version of SAP and people need to upgrade. That kind of stuff. That’s good enough – it will work fine. But if you truly need to build applications and you need to work together with a company to create business value, and that’s what a lot of outsourcing is about as well, I haven’t seen it working.

“I tried it again last year, and I gave a company a chance. I had a really good relationship with this consulting firm and they told me that they had an excellent team in India, and ‘Let’s try this project just for a three-month trial.’ And it was more or less the only project in the last five years that went belly-up.”

As Kevan Hall pointed out, when you’re managing across distance, culture, time zones, working through technology, and commercial considerations, outsourcing is so much more complex.

“One of the things we see a lot with clients who have outsourced is what I call the balance of trust and control. Because I don’t know you and I don’t trust you, I tend to control you. And so we go out to India and we have these incredibly heavy processes which we beat you up to make sure you follow without any sense of initiative or change, and then you start complaining that the Indians don’t have any initiative and don’t innovate.

“Well, you’ve told them not to and they’ve very smart people, albeit with higher turnover, and then you’re finding that problem of ‘how do we build trust?’ So many organisations outsource processes and spend an enormous amount of time on process, but they don’t have the travel budget to even go and meet the people who are doing a service for them.

“So how are you ever going to build a relationship? You wouldn’t do it in your own business. So doing it in an even more complex environment…how’s that going to work?”

“You have to look at the type of activity being outsourced,” said Dr Joost Visser, SIG’s Head of Research . “There is a lot of success in outsourcing in all sort of activities. In software application development where you are trying to create business value and where people are being creative, like in the automotive industry, thinking of the next engine or concept car, I think that by basically taking the team you need and pulling it out over locations and over time zones, you’re creating a challenge for the teamwork you need for that activity.”

There is another factor: the customer, suggested Kevan Hall.

“If you decided that you’re going to bring your development team into one place and therefore take away one barrier to complexity, which is distance, which makes a lot of sense, then aren’t you just exporting that level of complexity to the customer? Because they still have to manage with the fact that they still have stakeholders spread around the world in different time zones and different cultures. And they’ve got complex needs. It’s OK for you now. But is that the right thing to do for the customer?

“Human Resources has done that. They’ve gone to specialist centres and business partners. And all that’s done is that the business partner has to manage all the complexity rather than the organisation.”

How do you create successful software development teams? (Part 1)

Universal Credit: who’ll be responsible if it goes wrong?

By Tony Collins

When asked whether Universal Credit will work, be on budget and on time, Ian Watmore, Permanent Secretary, Cabinet Office, gave a deft reply. He told Conservative MP Charlie Elphicke on 13 March 2012:

“From where I sit today, I think all the signs are very positive. I am never going to predict that something is going to be on time and on budget until it is.”

If the plans do not fall into place who, if anyone, will be responsible? In theory it’ll be Iain Duncan Smith, the Secretary of State for Work and Pensions. But as Watmore told the Public Administration Committee, there are several other organisations involved. Although the DWP and HMRC are building the IT systems, the success of Universal Credit also relies on local authorities, which are overseen by the Department for Communities and Local Government.

There are also the Cabinet Office and the Treasury whose officials seek to “ensure that what is going on is appropriate” said Watmore.

If Univeral Credit goes awry all the departments may be able to blame the private sector: the employers that must pass PAYE information to HMRC so that the Revenue’s Real-Time Information element of Universal Credit can work.

David Gauke is the minister responsible for HMRC so would he take some of the blame if Real-Time Information didn’t work, or was not on budget, or was delayed?

Or would the main IT suppliers Accenture and IBM take any of the blame? Highly unlikely, whatever the circumstances.

There is also a dependency on the banks.

But nothing is wrong … is it?

All those putatively responsible for Universal Credit continue to say that all is going well.

Duncan Smith told the House of Commons on 5 March 2012:

“We are making good progress towards the delivery of universal credit in 2013, and I have fortnightly progress meetings with officials and weekly reports from my office. I also chair the universal credit senior sponsorship group, which brings together all Government Departments and agencies that are relevant to the delivery of universal credit.

“Design work is well under way and is being continually tested with staff and claimants, and the development of the necessary IT systems will continue in parallel.”

He said that universal credit will reduce complexity by putting together all the benefits that are relevant to people going back to work – though benefit systems that are not relevant to the coalition’s “Work programme” will not be included in the DWP’s Universal Credit IT consolidation.

To reduce risks Universal Credit will be phased in over four years from October 2013, each stage bringing in a different group of claimants.

But …

Campaign4Change has asked the DWP to publish its various reports on the progress of Universal Credit and it has refused, even under the Freedom of Information Act. It seems the DWP’s secretiveness is partly because all of the risks related to Universal Credit have not been mitigated. We will report more on this in the next few days.

Meanwhile to try and answer the question in our headline: who’ll be responsible if Universal Credit goes wrong? The answer is: the private sector probably. Or rather nobody in the public sector.

Can hundreds of millions be spent on Universal Credit in an agile way?

Universal Credit suppliers Accenture and IBM look to India for skills.

Is Universal Credit a brilliant idea that’s bound to fail?

Universal Credit latest

Universal Credit and the banks.

IT crisis management – an ongoing NHS case study

By Tony Collins

When a public-facing go-live goes wrong should communications be neutral in tone – or accentuate the positive?

On 8 December 2011 North Bristol NHS Trust went live with the Cerner Millennium electronic patient records system under the NPfIT programme.

At first Trust staff thought the difficulties were confined to a mix-up over outpatient appointments but it later transpired that there were 16 “clinical incidents” between 1 December 2011 and 17 January 2012 that were related to the Cerner Millennium implementation.

The Trust has published regular public information notices on the benefits, expected benefits, and problems arising from the Cerner implementation.

Reassuring in tone, the notices have made no mention of anything more potentially serious than administrative “issues”:  non-existent appointments were set up and letters sent to patients in error. The notices said that though the “issues” caused disruption and frustration, patient safety had not been compromised. The Trust apologised to staff and patients.

Clinical incidents

No mention was made in the notices of staff having reported clinical incidents in which the new patient records system was a causal factor. The NHS usually categorises  each clinical incident as a  “near miss” or “actual harm”.

In Campaign4Change’s various conversations with the North Bristol Trust over the potential seriousness or otherwise of its IT problems, one thing has been clear: it is pleased with the level of public information it has given out over the problems:

–       regularly-updated messages on its website,

–       briefings to the media including interviews for regional BBC and ITV channels by Ruth Brunt, the Trust’s chief executive,

–       board papers,

–       on-time answers to requests under the Freedom of Information Act

–       leaflets and posters placed in outpatient clinics and on car parking machines explaining that the Trust was implementing a new computer system and apologising for any delays patients may experience

The Trust also gave GPs a dedicated telephone number, fax number and email address for GPs or their patients to contact for further advice.

Profuse public information

We agree that the Trust has run a diligent public information campaign; and its communications staff have always responded quickly to our calls –  and with the documents we requested. The staff were frank in answering our questions. They told us that no decision has been taken yet on whether the Trust will publish the results of an independent inquiry into the Cerner implementation.

But if the Trust doesn’t publish the lessons from its Cerner implementation, it may wish to be reminded of a warning by the Local Health Board of Merthyr Tidfil, at the top on its Clinical Incident Reporting Policy paper: –  To err is human; to cover up is unforgivable; to fail to learn is inexcusable.         

If the Trust does not publish how will others learn from its mistakes?

Accentuate the positive?

The quantity of public information released by North Bristol NHS Trust is not an issue – but how informative is  it? Does the wider culture of the Trust still force staff to accentuate the positive?

The first of the Trust’s website statements on the problems of the Cerner implementation came about five weeks after the go-live. The opening sections of the statement made no mention of any problems. Indeed a series of bullet points listed the benefits of the system:

  • Patient records will now be securely stored electronically on a single system, replacing paper records.
  • Authorised clinicians can quickly find and share information on patients and their medical history and no longer rely on paper filing records.
  • Clinicians will also be able to access records at the patient’s bedside and can input information and statistics immediately.
  • Patients will no longer have to repeat their details to different clinicians as they will be accessible in one place.
  • Tests and outpatient appointments can be set up immediately with the patient.

The Trust’s website statement went on to say that “many”wards as well as A&E at Frenchay Hospital [Bristol] are using the new system.

Only if you’ve read this far will you see a reference to problems.

“However, we have experienced some unexpected problems in the last few weeks with outpatient appointments…”

“Huge improvements”

The current media statement is, again, more upbeat than neutral.  The vague mention of problems is countered by the equally vague claim of “huge” improvements.

“At North Bristol NHS Trust we have been implementing a new electronic patient record system to replace an outdated, less efficient system. Our wards, two minor injuries units, the Emergency Department, theatres and maternity are using the new system.

“However, we have experienced some unexpected problems with some of our outpatient clinics resulting in non-existent appointments to be set up and letters sent to patients in error. Our priority is always patient safety and we are clear that this has not been compromised.

“These issues have caused disruption and frustration for our patients and our staff and we recognise that this has not delivered the level of service that we expect, and the public expect, from us. We apologise wholeheartedly for that.

“Our staff have shown real commitment, hard work and dedication to continue to deliver patient care. Our Information Management & Technology Team worked very hard to rectify these problems as quickly as possible and we have seen huge improvements.

“The system in all outpatient clinics has now been rebuilt and relaunched. These clinics are now in a position to effectively use the new electronic records system. We anticipate there will be a further transition period for staff in those clinics. We firmly believe that the new system, once fully implemented, will improve services for our patients and provide real value.”

Campaign4Change pointed out to North Bristol that board papers on the troubled Cerner implementations at Barts and The London were commendably detailed and informative.

Barts had referred breaches of government targets on waiting times, complaints from patients, delays in the reporting of statutory and other trust performance information, extra costs, losses of income because of reduced activity, and the effect of data errors. There has been little of any of this from North Bristol’s public information campaign.

Freedom of information

Indeed North Bristol has refused to answer questions that were asked under the FOI Act by D Haverstock of the South West Whistleblowers Health Action Group.

The Trust refused Haverstock’s requests for:

–        a copy of your Cerner implementation plan, including pilot

–        the criteria on which the go-live decision was taken

–       a copy of the issues log for the implementation, with a full history of closed and open items.

–        reports on Cerner Project Board/Steering Committee meetings.

The Trust did give Haverstock a vague answer to her question on whether the Trust will have to take over the running costs of Cerner from 2015 when the Department of Health’s NPfIT contract with BT ends.

The Trust said the running costs for Cerner will become the Trust’s responsibility from October 2015 – but it doesn’t know for certain what the costs will be.

“The exact costs are still being calculated, but will be around the same levels as our previous patient administration system, we estimate,” said the Trust.

North Bristol declined to answer Haverstock’s other questions because “at this time the Trust feels that to answer your questions regarding the Cerner Millennium implementation would compromise our position with BT and Cerner”.

Rightly, Haverstock challenges the Trust’s use of the word “feels”. Rejections of FOI requests should be based on facts not its feelings.

Says Haverstock in her request to the Trust for an internal review: “Subjective feelings are not a valid reason for rejecting an FOIA request. What is your objective, evidence base for rejecting this request? [Thank to Theyworkforyou.com for this information.]

Comment

Poorly-designed health IT can kill, according to a US Institute of Medicine report “Health IT and Patient Safety Building Safer Systems for Better Care” in November 2011.

The report says:

“Poorly designed health IT can create new hazards in the already complex delivery of care.

“Although the magnitude of the risk associated with health IT is not known, some examples illus­trate the concerns.

“Dosing errors, failure to detect life-threatening illnesses, and delaying treatment due to poor human–computer interactions or loss of data have led to serious injury and death …”

There’s no evidence that the problems at North Bristol have caused any harm to patients. Indeed the Trust, in reporting the clinical incidents in response to a BBC’s reporter’s FOI request, says its “robust safeguarding processes, as well as additional checks and balances in all departments” have “ensured that clinical safety was not compromised and no patients were put at risk”.

It adds: “Our priority is always patient safety and there is no indication that this has been affected.”

But would we know if patient safety had been affected? In its public information campaign the Trust has been prolific. But the accent on the positive, rather than a neutral and factual account of the specific problems, has left us with little confidence that all the truth has yet come out.

In an IT-related crisis it is not a mass of information that the public and media regard as helpful but specific answers to specific questions. Has North Bristol managed its IT-related crisis well? Up to a point, Lord Copper.

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