Post Office Ends Fujitsu Contract in Horizon IT Scandal

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The Post Office has decided to part ways with the company involved in the Horizon IT scandal. Despite facing criticism for its role in a significant miscarriage of justice affecting subpostmasters, Japanese corporation Fujitsu had been receiving contract extensions. However, outsourcing firm Accenture has now been granted a deal to take over the Horizon system.

Another entity, One View Commerce, has been assigned to develop a new IT system within a specified timeframe. While this marks a shift away from Fujitsu’s controversial involvement, the company is expected to remain engaged and compensated until the projected completion date next year.

The contract with Accenture, set to be finalized in the coming months, spans five years initially with a potential two-year extension, valued at £322 million including VAT. On the other hand, the arrangement with One View Commerce could extend until 2038, costing £169.2 million.

According to the Post Office, these contract awards are aimed at revolutionizing technology across its branch network. Post Office CEO Neil Brocklehurst expressed the complexity of transitioning away from Horizon, emphasizing the need for a careful and responsible approach to the process.

Previous attempts to replace Horizon, including one involving IBM, failed in 2016, incurring a £40 million expense. Since 1999, the Post Office has spent over £2.5 billion on contracts with Fujitsu, with additional sums paid for contract extensions. Postmaster Sir Alan Bates criticized the ongoing financial support to Fujitsu, calling for a change in approach and questioning the company’s continued involvement.

The Post Office stated that Accenture will collaborate with Fujitsu during the transition to ensure the transfer of knowledge and resources necessary for the operation of the Horizon system. Simultaneously, efforts will be made to develop new systems tailored to meet the future needs of postmasters and internal teams.

The confirmation was made that “Fujitsu will continue to support the Horizon system during the transition until their formal exit date.”

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