Accenture examining alternatives to iSoft

The chief executive of Accenture has said that the company is examining alternatives to its sub-contractor iSoft in relation to two contracts to modernise NHS IT systems in the Eastern and North-east regions of the NHS.

Asked by analysts about recent developments at iSoft, Accenture’s chief executive Bill Green, confirmed that contingency plans had been developed if the company could no longer continue with iSoft: "Yes, we are watching the iSoft situation closely, as you might expect we would. We have a series of alternatives we can take forward, and we’re prepared to go with those if it becomes necessary."

In recent weeks, industry rumours have linked Accenture with both Cerner, the clinical software supplier for the South of England, and highly-acclaimed US healthcare IT firm EPIC systems.

In a separate question about last month’s National Audit Office report on the programme the Accenture CEO said: “I don’t think there were surprises in it. It generated a lot less heat and light that it might have, and I think that’s a good thing for the programme.”

Green’s remarks were made in a conference call with financial analysts following the publication of Accenture’s third-quarter results.

Over the past six months, iSoft has lost approximately 80% of its market value after a series of profits warnings resulting from delivery delays, as well as the announcement it was to restate its previous accounts to reflect a change in its accounting policy, a move that effectively wiped out historic profits.

In March Accenture made a provision for losses of $450m against its NHS contracts, citing “significant delays by one of Accenture’s major subcontractors in delivering software”.

iSoft were subsequently defended by NHS IT boss Richard Granger, who pointed out its software had successfully deployed by Computer Sciences Corporation in the North West and West Midlands region.