News:
Detica acquires
m.a. partners
page 2

Opinion:
Between a rock
and a hard place
page 8

Feature:
A broad-based
approach to marketing
page 11

  September 2006   :  
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Show me the money!
Mick James focuses on the ongoing saga that is the Connecting for Health project and asks whether the consultancies involved are really to blame? Could it be that some of the largest consulting firms on the planet were brow-beaten into being suppliers for the ill-fated project...
Connecting for Health – a project turned sour?
 
 
   I’d sort of promised
myself to stop writing
about Connecting for
Health, but I just can’t
tear my eyes away. Latest
revelations include a
story from Computer
Weekly
that the National
Audit Office's report was
changed before
publication to present
the programme in a more
positive light. Kudos to
Weekly for digging up
the text, but shouldn’t
some credence have been
given to the notion that
the final draft was an
accurate reflection of
the NAO’s final verdict,
rather than immediately
branding it a “cover
up...which reads as if it
were a defence of the
programme composed by the
Department of Health”.
   If I were the NAO I
would immediately take
umbrage at this stain on
my honour and refuse to
leave the dressing room.
Not that it makes much
difference – the final
report, now castigated as
sycophantic, was
construed in the most
negative terms anyway.
   More serious is the
continuing financial
uncertainty surrounding
iSoft, one of the major
sub-contractors. No-one
has made the case that
 
  
   
 
 
 
 
 
 
    But I still think
we’re missing the wider
picture. This is not only
the biggest IT project
this country has ever
attempted, but also a
completely groundbreaking
piece of procurement.
That’s a rather volatile
combination, but a
fascinating one.
   If they could only
stop invading foreign
countries, this
Government’s reputation
would stand or fall by
its contribution to the
reform and revitalisation
of public services.
Connecting for Health is
one of the biggest
investments in that
project and represents a
massive leap of faith in
the idea that the health
service can be seriously
improved by information
technology. I find that
rather touching. And
what, really are the
alternatives? Personally,
I feel as if I have been
transformed into
something of a demi-god
just by the advent of the
internet (and would be
worshipped as such if
everyone else hadn’t got
it). Were we really going
to sit back and let this
transforming force do
wonders for Tesco’s but
not our hospitals?
   Unfortunately for this
 
 dream, the Government has
a pretty unenviable
record when it comes to
procuring IT. It’s said
to be the mark of lunacy
if you keep doing the
same thing and expecting
different results. So
this time the procurement
was conducted on a
radically different and
much more confrontational
and competitive basis.
The stringent terms and
high level of risk made
so many contractors walk
away that one has to
wonder on what basis the
remaining players stayed
in the game.
   I suspect some may
have had very little
choice – to have walked
away from a government IT
project of such a scale,
and such a major part of
health IT spending may
have been too damaging to
the image and reputation
of some of the firms
involved.
   Did the Government
bank on this, and
effectively blackmail its
own suppliers? I’d hate
to say so definitely but
it’s beginning to look a
little bit like it. And
in that case, is this the
way to do procurement? It
might be a vote winner to
build government
infrastructure with the
wealth of consultancy
 
 shareholders and
partners, but I’m not
sure if it’s a recipe for
a long-term healthy
relationship between the
Government and its
suppliers. One wonders on
what terms these firms
will engage with HMG in
future? The Government
may think it has the whip
hand, but the number of
firms that can
successfully carry out
projects on this scale is
very small indeed. What
if none of them want to
play next time?
   Of course, the
question of how exactly
you do procure
infrastructure is still
unresolved. Most of the
companies that originally
built our canals and
railways went bust, and
we didn’t even get the
Channel Tunnel onto a
stable footing. In the
meantime, we should be
getting a massive piece
of infrastructure on the
cheap, whether we want it
or not. It may not be on
time, but at least it
won’t be haemorrhaging
money. Perhaps we should
all shut up now until
it’s finished.
  
  
  
  
  
 
 this is in some way the
fault of either the NHS
or its head contractors,
but the story seems to
keep getting thrown into
the mix as if to
illustrate the general
rottenness of all things
to do with IT and
government.
   As further
illustration of the
negative mindset
surrounding this project,
even the fact that BT has
only been paid a
miserable million quid so
far is being seen as a
bad thing.
   Of course, there are
serious questions to be
raised about Connecting
for Health. I’m not a fan
of big, centralised
computer projects (or
big, centralised anything
for that matter), and
find the British Computer
Society’s suggestion that
a distributed
architecture would work
better intriguing, as
well as the suggestion
(apparently omitted from
the final NAO report)
that such systems work
well in other countries.