Earlier this month it was revealed that the cost of the Integrated Technology Solution programme – the largest business-change programme ever undertaken by the organisation – had risen by more than £20m to £63m.
News of the increase came as the government announced that a partnership of companies led by Keytree – part of Deloitte – had been awarded a major contract, worth £19.3m over four years, at the heart of the change programme.
A further £4.9m contract over five years has been agreed with software company SAP.
More details about how the rest of the money will be spent have now been provided, following a request by the JEP.
The breakdown includes £5.45m budgeted for a programme partner. The tender process for that contract is still under way but expected to conclude shortly. The successful company will be responsible for overseeing the management of the project and ensuring that the government and the Keytree group are ‘pulling in the same direction’, according to chief operating officer John Quinn.
He said that running such a major project required specialist knowledge and experience, which was why an external company was being sought to carry out the role.
Meanwhile, the cost of Government of Jersey resources due to be ploughed into the project has been estimated at £23.6m – far higher than originally anticipated and the main reason given for the overall increase in costs. Around 100 staff are expected to be redeployed to work on the programme and their day jobs will have to be covered.
Contingencies of £6.4m have also been budgeted, alongside £2.2m for ‘other costs’. The figures were approved by the Council of Ministers on 2 February.
Some of the money has already been approved in the previous Government Plan, and this has been topped up by the Treasury in response to the increased budget estimates. A further £12.5m capital bid will be made in the next Government Plan, which is due to be lodged later this year.
Two pages of further coverage: See pages 8 and 9 of Monday’s JEP.
