NHS IT funds set to double
Role for resellers in National Project for IT still unclear
The NHS's £2.3bn IT modernisation funds are set to almost double following negotiations between project head Richard Granger and Health Secretary John Reid.
But the role resellers will play in the National Project for IT is still unclear.
An NHS representative said: "In accordance with the Wanless Report, NHS IT expenditure is scheduled to increase towards four per cent of total expenditure over a five-year period."
The Wanless report, conducted by Derek Wanless and published in April 2002, was an assessment of the long-term IT resource needs of the NHS.
Gordon Davies, commercial director at VAR Compusys, said he was not surprised by Granger's request for extra funds because of the project's challenges.
He added that resellers are not yet feeling any major benefits, as they wait for subcontracts to filter down from consortia that have bid successfully for projects.
IT services consultant John Griffith was also unsurprised by Granger's request. "People have been dropping from the bid list because the terms set have made the revenue opportunity unacceptable," he said.
"An increased budget reflects an assessment of the revenue opportunity. This is a reflection of the dog's dinner the project has been."
In last week's annual report, NHS chief executive Sir Nigel Crisp said: "The implementation of the new IT systems and the reform of staff contracts will help support further improvements."