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New IT scandal Cap Gemini at VSB

Zembla has broadcasted a documentary about the IT problems at the SVB. SVB hired Cap Gemini for the development of the system that will handle the process and payment of the PGBs. 100million euros later still no working software solution.The SVB is responsible for paying PGB which is a type of personalized budget that is mend for social care. Cap Gemini found an outsourcing partner in India. Some employees state that some parts of the software where not even developed. Some state that the quality of English and of the Functional designs send by Cap Gemini where appalling. Despite the software not working the work packages delivered where all accepted. This was possible because the approver on the side of SVB was also a hired Cap Gemini employee. And the person he reported to was a Cap Gemini employee as well and his business partner in a small enterprise as well. The whole project has cost about €100million and did not deliver a working software solution. A second company was able to create the complete solution  with 8 developers in 4 month at a price of € 1,5million.

Similar problems have occurred earlier at UWV which is responsible for paying unemployment wages. UWV also hired Cap Gemini for the development of a software solution. This project failed as well.

The downside of the situation is that it affirms the believe of Dutch software houses that outsourcing only means trouble. Hopefully the severe shortage of skilled IT personnel will convince them to try nearshoring, which is a perfect solution for the staffing  problem.