Australian gov't dumps software contractors over feud

18.04.2006
The Department of Child Safety in the state of Queensland, Australia, has taken its integrated client management system (ICMS) back in-house after dumping Fujitsu and Onyx in a bloodbath that has seen around 20 contractors marched out the door earlier this month.

In September 2004, Fujitsu, Onyx and Microsoft were commissioned by the Department of Child Safety to deliver the design of the Carer Directory, the first of three phases of the new, integrated client management system based on Onyx CRM and Microsoft's .Net technology.

This design was delivered to the department in March 2005, but since then the project has taken an abrupt turn with staff being dumped to bring the project back in-house and to also use a Microsoft CRM package.

According to one source on the project, who requested anonymity, the cost of the system has already exceeded A$44 million (US$32 million).

The Microsoft coup has seen the termination of 20 contractors including programmers, testers and technical writers, the source said.

"Fujitsu and Onyx made big shows of getting in on this at the time, but it seems the mid-2005 deadline has been overshot and Microsoft has now stepped in," the source said.

The source said although Microsoft was an original partner when the first contract was announced, the release of its own CRM offering compelled it to push to "substitute the Onyx CRM solution for its own".

A Fujitsu spokesperson said Fujitsu, Onyx and Microsoft had contributed "significant time and resources" to assist the department in developing its understanding of the full scope and cost to implement all three phases of the ICMS based on the successfully tendered solution architecture.

"In July 2005, Fujitsu was advised that the department was pursuing an alternative solution, leveraging internal resources," the spokesperson said. "Fujitsu has had no contact with the department or Microsoft regarding ICMS since this time. The decision not to continue with the solution, which was designed by Fujitsu, was taken by the department, not by Microsoft."

In addition to its CRM product, Microsoft has also been given most of the services work, and is believed to be "burning through A$800,000 a fortnight", according to the source.

Computerworld understands that the cost blowout is due to a change in project scope. Initially, the system was being developed for the Department of Child Safety.

It is now being expanded across four departments including Department of Communities, its disability support agency, and the Department of Aboriginal and Torres Strait Islander Policy.

The Queensland government was unable to officially comment at press time.