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£81m DfT HR shared services project slammed by MPs
18 December 2008:
The Department for Transport (DfT) scheme aimed to cut administration expenses by basing payroll, finance and HR services all at one site in Swansea.
But MPs on the Public Accounts Committee said the project was rushed, with computer systems inadequately tested resulting in poor performance. The new computer system had even issued messages in German.
"The Department for Transport planned and implemented its shared corporate services project with stupendous incompetence," the committee said.
"The plan was for the central part of the DfT and its seven agencies to be sharing services by April 2008. The department knew that it was pushing things with such a tight timetable but, without robust challenge to such a risky strategy, ploughed on confidently. The result was lamentable."
The DfT initially estimated that it would cost £55m to set up the centre and that the benefits over the first 10 years would be £112m. However, current forecasts show that the net cost to the department will be £81m.
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Source: Personnel Today
