U.K. Health Software Grows

(MoneyWatch)  The Times of London reports on an investigation they did into large software programs contracted for by the U.K. government. Not surprisingly like many large programs these have seen significant growth in cost and schedule. They highlight a plan to build a comprehensive database of health records that would like doctors and hospitals. This program is now four years late and its costs have increased five fold. Originally planned at just over two billion pounds it is now approaching thirteen. The excuse given by the government is that requirements have been added, which if you look at the history of acquisition is just the way to increase cost and schedule for any program. Fujistsu the company that was working on the contract claims that they are owed six hundred million pounds for over six hundred changes requested by the government. The paper reports that other similar contracts have seen major cost growth as well. It is difficult to estimate how much or how long a software program will take to develop and produce so that is why original contract values end up being so small compared to the final cost.