§ Mr. Nigel JonesTo ask the Secretary of State for the Home Department what compensation his Department has(a) requested and (b) received from Siemens plc following delays to the development of a new casework system by Siemens for the Immigration and Nationality Directorate. [70907]
§ Mr. Mike O'BrienThe Immigration and Nationality Directorate Casework Programme is a privately financed business change programme supplied by Siemens Business Services (SBS). Although development of the full Information Technology application has been delayed, many elements of the Programme, and much new Information Technology, have been delivered.
Some payments are made to SBS for services provided and milestones achieved, but SBS's earnings depend mainly on casework productivity improvements. The programme delay means that productivity has not improved as fast as expected.
A commercial agreement has also been negotiated with SBS for changes to the contractual payments to reflect the delay in full implementation.
209WThe payments made to SBS up to the end of 1998 were 4.5 million less than the contract target levels. SBS's earnings will continue to be depressed until the full Information Technology is delivered and productivity and output increase.