Government is losing millions of dollars on failed ICT project benefits




The government will stop the development of an ICT project for providing include the child and old-age and survivors’ benefits. There are 43.7 million into the development of the system; stopping cost another 10.4 million.

The Social Insurance, which is responsible for providing benefits, stop definitively with the development of the project after experts had studied’s system. According to them, the introduction of the system, which was carried out by the French company Capgemini would ‘highly problematic’ are. The contract with Capgemini is therefore terminated.

The SVB remains now use the existing infrastructure and expects that it will be. Still adequate the next five years at least In addition, is examined if there are still some parts of the new system can be taken. Still in use The SVB expects no problems in making payments.

The system would actually be put into use as early as November 2013, but the Social Security decided against because the system would not work properly. Capgemini insisted that the system is working properly, but an internal research organization of the government decided that it was better to stop the undersized system, which originally comes from Oracle.

The government has already invested 43.7 million euros in the project in this case; termination can cost an additional 10.4 million euros. It is unclear where that money is going; Capgemini may be commuted to break the contract. A spokesman for the SVB was about giving any clarity.

It happens often that failed ICT projects, the government millions. According to Professor Hans Mulder failed more than a third of large ICT projects so severe that it is completely deleted and will not be put into use. That costs the government annually EUR 4 to 5 billion sets Mulder.


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