LSC Online failures cost £2.68 million

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FOI request reveals that LSC Squander £2.68 Million on system failures

Dear Mr Keogh

You recently wrote to us asking for the following information, my apologies for the delay in responding to you:

1. The cost of LSC On-Line to set up:

The total budgeted costs for the Supplier Management System (SMS), of which LSC On-line is a significant component, are £9.4m. Once the system is fully operational we anticipate annual running costs will be approximately £860k.

2. The cost of rectifying the current difficulties with LSC On-line, both actual and project for the future:

The total budgeted costs for addressing the system issues to enable re-launch are £2.68m, which includes contingency costs.

3. The reasons why LSC On-line has not performed as expected, and who/what if anyone/thing is to blame for this:

The SMS was a complex IT development designed to support the administration of the new fee schemes introduced in 2007. There is no single reason for the operational issues that have arisen.

The need to support the introduction of the new fee schemes resulted in a very challenging timeframe within which SMS was to be delivered. The initial performance issues that we encountered were the result of an unexpectedly high usage of the system from the outset, as well the emergence of some unanticipated processing constraints linked to speed of delivery. Another contributory factor in some cases was that it quickly became apparent that many users were unsure on how to use the system and were entering inaccurate and invalid data that led to submissions being rejected. This added an additional level of complexity to the issues. In the interim, since the system was withdrawn, we have external feedback that we have been making great strides in overcoming the issues, and are currently testing the further improvements. -End-

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