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NHS squares EDS over nixed email deal

C&W picks up the reins

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EDS and the NHS National Programme for IT (NPfIT) have reached an "amicable" settlement over the termination of the IT services giant's contract to manage email for the 1m NHS staff. Cable & Wireless is to take over the contract.

Under the terms of the settlement, EDS is to retain responsibility fthroughout the hand-over, so that there will be no loss of services.

In a press release today the Department of Health said the settlement apportions no blame to either party, but terms were "commercially confidential and no further statement will be made".

In March this year, EDS said it would sue over the contract cancellation. The company sought £10m compensation for costs incurred. Executives said that NHS IT chief Richard Granger seemed determined to paint the service as failing and were furious that there had been no arbitration. ®

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