Capgemini scores £150m contract to help Student Loan Company overcome its IT problems 5 years after £50m superfail • The Register

Capgemini scores £150m contract to assist Student Loan Company overcome its IT issues 5 years after £50m superfail • The Register

Capgemini has gained a £150m contract with the Student Loan Company (SLC) because the non-profit seems to write down the subsequent chapter in a troubled historical past with info know-how.

The outsourcing and consultancy agency is to change into a “Strategic Partner for Platform Delivery and Technology Services” to the non-departmental public physique, in response to a young discover. It is anticipated “to deliver a wide range of services across our Platform Delivery and Technology Services area with the SLC Technology Group”.

The contract began on 15 April 2021 and is about to run till 14 April 2028, the doc mentioned.

Capgemini joins fellow French agency Atos, which SLC appointed “Strategic Partner for Customer Software Delivery” in September final 12 months beneath a seven-year contract price £216m.

The two suppliers have some floor to make as much as modernise the loan firm’s IT property.

In 2015, SLC wasted £50m on a canned IT transformation undertaking, designed to supply a “digital by default” system to deal with a serious improve in student numbers. Launched in 2013 along with the Government Digital Service, it was alleged to be a “robust and agile customer-centred student finance system” to deal with the “very poor” student expertise because of a scarcity of case info.

The plan was to introduce a contemporary, built-in, and versatile IT system to allow “the safe delivery of Higher Education reform, including changes to borrowers’ repayment terms including variable interest rates.”

HCL had been appointed as a supply associate to construct substitute Core Ledger and Security modules, with three on-line functions going stay in January 2014. The Register understands that issues arose between integrating the internally developed software program and the core engine supplied by HCL.

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By July 2019, the scenario had not a lot improved. A Department for Education assessment into SLC’s operations discovered that the “present know-how structure was created within the Nineties for a a lot easier, decrease quantity service.

Student Loans Company burns £50 million in IT undertaking superfail


“The need to upgrade the SLC’s ageing systems and adopt new technologies is now critical,” the report mentioned [PDF]. “As new products have been introduced, scalability challenges and limited re-use of business rules have led to a fragmented digital offering and an inflexible ICT estate which significantly lengthens delivery timescales, pushes up customer calls, and increases the cost and risk of operational failure.”

It concluded: “Despite some incremental improvements, the SLC will need to address the pressing issue of its overwhelmed and outdated IT infrastructure, as well as growing its diagnostics and data management capabilities.”

SLC responded by launching in February 2020 a £200m procurement, wherein it promised to “transform the commercial framework and delivery models leveraged across SLC’s estate when working with strategic technology partners.”

At the time, CIO Stephen Campbell mentioned: “This is the first stage of delivering a new technology model that will see us working with a small number of strategic partners to develop, deliver and support our technology estate and digital services to customers.”

In its 2020-2023 company plan, revealed in December 2020, SLC pledged to “address our technological debt – upgrade and simplify our IT systems to reduce their interdependencies, outdated components and total cost of ownership.”

The nation will likely be watching to see if Capgemini, Atos, and SLC itself are as much as the duty. ®

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