A leaked document from Hackney Council has revealed that Oracle's spin-off of its local government division last year cost the borough #150,000 by delaying a project by six months.
The project to implement Oracle's Financials software as part of its housing benefit system suffered because of staff disruption caused by the MBO.
Hackney had planned to implement four modules in April this year, which now will not happen until next October. As a result this will delay payments to the council, which is forced to allocate part of its #300,000 legal challenges budget to cover the deficit.
Dave O'Connor, Oracle UK applications marketing manager, conceded there had been problems at Hackney. 'Things were not going well, so we sat down with Hackney and now believe the relationship is back on an even keel,' he said.
But after one Hackney representative admitted there were massive problems with the system, a second official denied that Hackney was suing Oracle.
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