Accenture has bailed out of two huge contracts to deliver regional IT systems and services to the UK National Health Service. An alliance led by CSC will take over the contracts, valued at $US3.78 billion over nine years.
Subsequently, embattled sub-contractor iSoft has terminated its contract with Accenture and both parties have agreed that any potential litigation relating to the period betweeen April 2 and September 28 will be annulled.
ISoft joins the CSC alliance, which will design, deliver and operate an integrated patient care record system. The iSoft application suite forms the core of the CSC software solution.
In March, Accenture said it had made a pretax provision of $450 million to cover losses it expected to make on the two local service provider contracts, to implement and service regional IT systems in the Northeast and East of England.
Under an agreement between Accenture, CSC and the NHS, Accenture has until January . 8 to transfer its responsibilities to CSC.
In January, iSoft said it would deliver the software late, and in June restated financial results because of questions over the way it booked revenue before delivering products.
iSoft is one of the two major providers of patient management systems to New Zealand district health boards.