IT project budgets fall off the rails

Transport for NSW has reportedly reached only a third of its end-user goals with its Making It Work For You IT systems overhaul despite spending $348 million of the project's $425 million budget.

Documents received through a freedom of information request and shared with Fairfax Media show that the project has burned through most of the funding for the project, which was aimed at transforming the state's transport agencies' IT systems, over a five-year period.

A recent report from a consulting firm found that the IT service delivery team established in 2011 is facing substantial challenges including a lack of funds to deliver the capabilities to successfully function as a systems integrator.

Service delivery performance is worsening and financial benefits expected from centralising IT functions are not being fully realised.

The report raises concerns about technical complexity and governance issues and warned that major interventions will be needed to address the situation. The report also warns that large end-user impacts are expected over the next four months.

But in a statement, Transport for NSW said the project remains within the approved funding and is delivering against a revised scope for the project, which was developed in March last year.

Meanwhile, the Department of Human Services has blown through the entire $102 million budget for its still incomplete child services payments and case management overhaul, according to Computerworld.

But the system is facing a backlog of defects and data is still being transferred between the legacy and the new system. In addition, the back-end system covering assessment and calculations still needs to be replaced.

The government has awarded Deloitte a $490,000 contract to assist in a review seeking to determine the functionality that Child Services Agency staff would like to see added to the new system. The budget will need to be increased to address the remaining challenges with the system and add any new functionality, the report states.

Image credit: ©stock.adobe.com/au/Mila Gligoric

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