The Post Office is cutting ties with the company responsible for the Horizon IT scandal. Despite facing criticism for its involvement in a major miscarriage of justice affecting subpostmasters, Fujitsu, a prominent Japanese corporation, has received contract extensions. In a significant move, outsourcing giant Accenture has been selected to take over the Horizon system.
Another company, One View Commerce, has been assigned to develop a new IT system. Although this development signals the end of Fujitsu’s controversial role, the company is likely to remain involved and compensated until the anticipated conclusion next year.
The contract with Accenture, set to be finalized next month, spans five years initially with a potential two-year extension, valued at £322 million including VAT. The agreement with One View Commerce may last until 2038, costing £169.2 million.
According to the Post Office, these contracts will revolutionize technology across its branch network. Post Office CEO Neil Brocklehurst expressed a desire to transition from Horizon swiftly but emphasized the complexity of the process, stressing the need for a responsible pace.
Efforts to replace Horizon with an IBM-built system in 2016 failed, incurring a £40 million expense. Since 1999, the Post Office has invested £2.5 billion in Fujitsu contracts, with over £600 million spent on extensions since seeking new suppliers in 2012, in addition to other taxpayer-funded contracts.
Renowned postmaster Sir Alan Bates criticized the prolonged financial benefits Fujitsu receives while victims await compensation, labeling it “absolute madness.” He questioned why other British software companies were not considered for these contracts and urged Fujitsu to ethically contribute to postmasters’ compensation.
The Post Office stated that Accenture will collaborate with Fujitsu during the transition to ensure a seamless handover of the Horizon system. Additionally, they will work on developing modern solutions tailored to postmasters and internal teams’ needs for the future. Fujitsu will continue to support the Horizon system until the formal exit date.