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Fujitsu Walks Out Of NHS IT Contract Over

After a lengthy round of discussions that were actually not leading anywhere, Fujitsu decided to end its contract with the NHS Connecting for Health (CfH).

The major bone of contention in this case was the fees that Fujitsu was asking for altering the health systems it was deploying in the south of England.

The NHS was demanding that Fujitsu customize the Cerner Millennium electronic care record systems that it has been installing for local NHS trusts, which was not affordable to Fujitsu at the rates agreed upon in the 2004 contract.

A CfH spokesman said that unfortunately even after their best efforts, an agreement on the core Fujitsu contract that is acceptable to all parties could not be reached.

Further, the spokesperson also said that CfH has taken this decision in order to protect the interests of the taxpayer and to preserve the basis of the payment-on-delivery system.

To add to this, a Fujitsu spokesperson said that the company decided to withdraw from the ‘National Programme for IT’ contract as the company did not see any prospect of an acceptable result from the recent negotiations.

CSC or BT is now considered the most likely to take over this contract from Fujitsu for the south of England; however, until the NHS decides on a suitable successor, Fujitsu will continue to run and maintain the existing systems

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.