How Do You Create an £8 million IT Project? Start With an £819,000 Project

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Swansea Council in Wales was supposed to get a new payroll system in 2006 for £819,000. However, problems kept cropping up, until the Council decided in June to cancel the project. However, according to news reports, the potential bill from the contractor for all the work done amounts to more than £8 million.

The contractor, Cap Gemini, disputes this amount, saying no final bill has been submitted.

However, the Swansea Council's executive director was quoted as saying saying that the £8 million figure was made up of "invoices that have been submitted by Cap Gemini to be paid, contractual claims and a series of sums of money which they believe the council would be due to pay."

At last report, Cap Gemini and Swansea Council are in negotiations to determine a mutually acceptable termination fee - likely to be less than £8 million, but I bet it is going to be pretty hefty nevertheless.

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