Accenture Stumbles on U.K. Health Work

By Stan Gibson  |  Posted 2006-03-29 Print this article Print

Accenture blames subcontractor iSoft in $450 million in future losses.

Accenture said it will lose $450 million in its outsourcing deal with the United Kingdom National Health Service, the company said March 28 in its second quarter earnings report. A major cause of the stumble was tardiness by a subcontractor, iSoft, a health care software developer, in delivering critical software, the company said. The result of the delay is to drive up cost and force Accenture to deploy interim solutions, according to Accenture.
Accentures work for NHS consists of designing, building, deploying and servicing a computer system for the national health agency.
"We are very disappointed that recent developments prevented us from meeting expectations this quarter. During the quarter, several issues increased the risks and uncertainties associated with the NHS contracts and affected our estimates of the expected contract revenues and costs," said Accenture CEO William Green in a statement. Reflecting the charge, earnings per share for the second quarter were 11 cents, compared with 35 cents in the second quarter of 2005. Check out eWEEK.coms for the latest news, reviews and analysis on IT management from
Stan Gibson is Executive Editor of eWEEK. In addition to taking part in Ziff Davis eSeminars and taking charge of special editorial projects, his columns and editorials appear regularly in both the print and online editions of eWEEK. He is chairman of eWEEK's Editorial Board, which received the 1999 Jesse H. Neal Award of the American Business Press. In ten years at eWEEK, Gibson has served eWEEK (formerly PC Week) as Executive Editor/eBiz Strategies, Deputy News Editor, Networking Editor, Assignment Editor and Department Editor. His Webcast program, 'Take Down,' appeared on He has appeared on many radio and television programs including TechTV, CNBC, PBS, WBZ-Boston, WEVD New York and New England Cable News. Gibson has appeared as keynoter at many conferences, including CAMP Expo, Society for Information Management, and the Technology Managers Forum. A 19-year veteran covering information technology, he was previously News Editor at Communications Week and was Software Editor and Systems Editor at Computerworld.

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