• Enjoy the freedom to innovate and grow your business

    [ad] With Microsoft Azure you have hybrid cloud flexibility, allowing your platform to span your cloud and on premise data centre. Learn more at microsoftcloud.com.

  • IT Admin: No Time to Save Time?

    [ad] Do you spend too much time patching machines or cleaning up after virus attacks? With automation controlled from a central IT management console accessible anytime, anywhere – you can save time for bigger tasks. Try simple IT management from GFI Cloud and start saving time today!

  • Free Forrester analysis of CRM solutions

    [ad] In this 25 page report, independent analyst house Forrester evaluates 18 significant products in the customer relationship management space from a broad range of vendors, detailing its findings on how CRM suites measure up and plotting where they stand in relation to each other. Download it for free now.

  • Great articles on other sites
  • RSS Great articles on other sites

  • Reader giveaway: Google Nexus 5

    We’re big fans of Google’s Nexus line-up in general at Delimiter towers. Nexus 4, Nexus 7, Nexus 10 … we love pretty much anything Nexus. Because of this we've kicked off a new competition to give away one of Google’s new Nexus 5 smartphones to a lucky reader. Click here to enter.

  • Enterprise IT, Featured, News - Written by on Friday, June 1, 2012 16:11 - 6 Comments

    Qld Health payroll: The lawsuit may be back on

    news The new LNP Queensland Government is reportedly attempting to source legal advice created for the previous Bligh Labor Government with respect to whether it would be feasible to sue vendors involved in the disastrous Queensland Health payroll systems implementation.

    In June 2010, following a damning report by the state’s Auditor-General into the payroll fiasco, which has seen many Queensland Health workers go unpaid and many others overpaid, the Bligh Government sought legal advice on whether vendors involved in the project could be sued for damages.

    “The Auditor-General’s report clearly identifies failings on the part of contracted provider IBM,” said a statement issued by then-Queensland Premier Anna Bligh and Health Minister Paul Lucas, noting the state reserved its right to withhold final payment and seek damages. “We have sought Crown Law advice in relation to options for terminating the payroll contract with IBM and it’s only fair that we seek to reserve our legal rights. The Government has issued IBM a Show Cause Notice as to why the contract should not be terminated,” Bligh said.

    That advice never went anywhere, to this publication’s knowledge, but it appears as if the new LNP Government led by Premier Campbell Newman may seek to resurrect the proposed legal action.
    LNP Health Minister Lawrence Springborg is currently seeking to find the legal advice provided to the previous government, according to an article published by the Courier Mail newspaper this week, but had been stymied, allegedly, because the material had become a Cabinet document and was therefore protected. The Labor Opposition has denied that the documents hold a solution to the payroll mess.

    The Auditor-General’s report filed in 2010 found that all concerned in the implementation — prime contractor IBM, Queensland Health itself and government shared services provider CorpTech — significantly underestimated the necessary scope of the project. IBM had initially told the Government that a “relatively small” amount of functionality would be required to implement a similar new payroll system at Queenland Health as a previous build at Queensland Housing — despite the fact that the Housing rollout only catered for 1200-1300 staff, compared with Health’s 78,000.

    The payroll systems rollout was based on software provided by German giant SAP, but SAP is believed to have had little to do with the implementation. However, also involved is the Workbrain workforce management software provided by software vendor Infor.

    In 2010, IBM defended its implementation at Queensland Health, when asked to respond to the prospect of facing legal action by the Queensland Government. “As a global company with deep expertise in dealing with highly complex systems implementations, we vigorously defend the quality of the system we delivered to Queensland Government,” the company said at the time. Big Blue maintained it was “not responsible” for many key aspects of the payroll overhaul as confirmed in the Auditor-General’s report.

    “We delivered within the governance structure established by Queensland Health and outlined in the Auditor General’s report,” the company added. “IBM has relentlessly and consistently delivered above and beyond the scope of the contract to assist Queensland Health identify and address concerns with its payroll process.” The company said its commitment to supporting the state in its mission to provide quality services to employees remained unchanged.

    Whatever path the Queensland Government takes with respect to the future of the system, it is likely to be expensive. Springbord has publicly stated that the cost of fixing the platform may rise eventually to $440 million.

    To be honest I don’t think the new LNP Government really knows what they are dealing with with regards to the disastrous payroll systems implementation at Queensland Health, and I don’t think they understand the dynamics involved between the implementation and the involvement of the various vendors either. Shocking, I know, that politicians may not understand complex technology implementations. I suspect it may take them three to four years to understand this problem and fix it. I await the next audit report into the issue with bated breath.

    Personally, I don’t think it would be a good idea for the State Government to sue IBM over the issue. Frankly, Queensland is likely still very reliant on IBM to keep this system working, and while IBM may share some of the blame for the issue in the first place, I suspect any court would find the lion’s share of the blame should go to the Government itself and its poor governance of the project. Besides, it’s not as if the state is going to be able to avoid dealing with IBM in the future — no major Australian organisation is uninvolved with the vendor — that’s how big it is. Probably the better course of valor would be to use the payroll issue as a stimulus to get better outcomes in other areas.

    Image credit: Capcom/Nintendo (Phoenix Wright: Ace Attorney video game)

    submit to reddit


    You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

    1. Posted 01/06/2012 at 8:12 pm | Permalink |

      Not to mention IBM knows how to write some air tight contracts that leave little room for it to be successfully sued.

    2. Qld Health = bad client = poor taxpayer
      Posted 01/06/2012 at 10:49 pm | Permalink |

      Queensland Health executive have a habit of blaming everyone other than themselves. This is a repeat performance.

      For example, the precurser to the current non delivery ehealth program was the trakhealth related project. This also ended up in court. This occured when Queensland Health countersued the vendor for 5 times the cost of the project.

      What is now commonly known is that Trakhealth has been found to have been subsequently implemented in many other jurisdictions in Australia and overseas. This would seem to suggest that the problem(s) were in no small measure to do with the client.

      In addition, the rationale provided by Queensland Health for the breaking of the contract and subsequent legal case was that the vendor Trakhealth’s technology could not scale to Queensland Health requirements. Anyone in the industry who knows the circumstances and anyone who only has a mild interest would also know the small but not insignificant fact that Trakhealth is built on and uses perhaps one of the most widely used and respected technologies in healthcare. Hence Queensland Health was not entirely honest in its dealings.

      Advance some considerable years later a failed payroll program and complete denial that $0.5B+ has been blown on ehealth for no substantial outcome. (Anyone who has worked in QH ehealth knows the so called “viewer” which just won an award was a so called tactical quick win project of the original ehealth program. It would seem that a tactical quick win takes 5-7 yrs.

      (here’s hoping that’s sufficient for those in QH IT to keep their jobs and not have the whole lot outsourced by the NLP).

      • Zwan
        Posted 02/06/2012 at 11:49 am | Permalink |

        100% agree its clear Queensland health can’t articulate their requirements to their vendors.

        But blame also lies on the vendors too. They shouldn’t be taking on the project blind like they have and caught wind the Queensland health were incompetent to hand such a project.

    3. Zaphod
      Posted 04/06/2012 at 1:50 pm | Permalink |

      Umm, it’s not ONLY an IT problem. One of the biggest issues was QH’s decision to centralise roster and timesheet processing at the same time as the roll out of the new system.

      The second big mistake was the architecture between SAP and WorkBrain. That was Corptech’s design.

      IBM did what they were told. And it works. If you put correct information into WorkBrain, it produces the correct pay (at huge cost it IT processing, but it does work).

      A pity the government’s lawyers weren’t on the ball when the contract was signed. If the government goes ahead with their suit far too many uncomfortable facts will come out. And IBM will still be able to say “we did what you contracted us to do”.

    4. Knows a thing or two
      Posted 06/06/2012 at 4:36 pm | Permalink |

      “Did what you contacted us to do?” The contractual obligations were written in braille. I.B.M amongst others relied on the fact they didn’t think the system would be implemented until more money was spent on providing additional applications to read, correct and write payroll information in to databases that then could be fed into these programs. It’s fine to want something, but when you have promised you can supply something and then start changing the terms that/’s when you are in breach. [censored by Renai] IBM will quickly change their tune when they realise QLD”ers are tough and come from the smart state. We don’t take kindly to cockroaches or shonky business. They won’t be asked to develop I.T programs in this state again.

      Paul Lucas

    5. Was on the ground
      Posted 06/06/2012 at 9:02 pm | Permalink |

      The solution was only designed to be an interim solution until the whole of government solution replaced it. When the main programme was halted, they had limited choices, as the existing system was failing daily. However instead of being sensible, it was a land grab by Qld Health, to see how much they could stuff into the solution, adding to it’s complexity and abusing the contract relationship between CorpTech (and hence IBM). CorpTech just stood back and let it happen.

    Get our 'Best of the Week' newsletter on Fridays

    Just the most important stories, one email a week.

    Email address:

  • Most Popular Content

  • Six smart secrets for nurturing customer relationships
    [ad] Today, we are experiencing a world where behind every app, every device, and every connection, is a customer. Your customers will demand you to be where they and managing customer relationship is the key to your business’s growth. The question is where do you start? Click here to download six free whitepapers to help you connect with your customers in a whole new way.
  • Enterprise IT stories

    • NetSuite in whole of business TurboSmart deal turbosmart

      Business-focused software as a service giant NetSuite has unveiled yet another win with a mid-sized Australian company, revealing a deal with automotive performance products manufacturer Turbosmart that has seen the company deploy a comprehensive suite of NetSuite products across its business.

    • WA Health told: Hire a goddamn CIO already doctor

      A state parliamentary committee has told Western Australia’s Department of Health to end four years of acting appointments and hire a permanent CIO, in the wake of news that the lack of such an executive role in the department contributed directly to the fiasco at the state’s new Fiona Stanley Hospital, much of which has revolved around poorly delivered IT systems.

    • Former whole of Qld Govt CIO Grant resigns petergrant

      High-flying IT executive Peter Grant has left his senior position in the Queensland State Government, a year after the state demoted him from the whole of government chief information officer role he had held for the second time.

    • Hills dumped $18m ERP/CRM rollout for Salesforce.com hills

      According to a blog post published by Salesforce.com today, one of Ted Pretty’s first moves upon taking up managing director role at iconic Australian brand Hills in 2012 was to halt an expensive traditional business software project and call Salesforce.com instead.

    • Dropbox opens Sydney office koalabox

      Cloud computing storage player Dropbox has announced it is opening an office in Sydney, as competition in the local enterprise cloud storage market accelerates.

    • Heartbleed, internal outages: CBA’s horror 24 hours commbankatm

      The Commonwealth Bank’s IT division has suffered something of a nightmare 24 hours, with a catastrophic internal IT outage taking down multiple systems and resulting in physical branches being offline, and the bank separately suffering public opprobrium stemming from contradictory statements it made with respect to potential vulnerabilities stemming from the Heartbleed OpenSSL bug.

    • Android in the enterprise: Three Aussie examples from Samsung androidapple

      Forget iOS and Windows. Today we present three decently sized deployments of Android in the Australian market on Samsung’s hardware, which the Korean vendor has dug up from its archives over the past several years for us after a little prompting :)

    • Businesslink cancelled Office 365 rollout cancelled

      Microsoft has been on a bit of a tear recently in Australia with its cloud-based Office 365 platform, signing up major customers such as the Queensland Government, Qantas, V8 Supercars and rental chain Mr Rental. And it’s not hard to see why, with the platform’s hybrid cloud/traditional deployment model giving customers substantial options. However, as iTNews reported last week, it hasn’t been all plain sailing for Redmond in this arena.

    • Qld Govt inks $26.5m deal for Office 365 walker

      The Queensland State Government yesterday announced it had signed a $26.5 million deal with Microsoft which will gain the state access to Microsoft’s Office 365 software and services platform. However, with the deal not covering operating system licences and not being mandatory for departments and agencies, it remains unclear what its impact will be.

    • Hospital IT booking system ‘putting lives at risk’ doctor

      A new IT booking platform at the Austin Hospital and Olivia Newton-John Cancer and Wellness Centre in Melbourne is reportedly placing the welfare of patients with serious conditions at risk.

  • Enterprise IT, News - Apr 17, 2014 16:39 - 0 Comments

    NetSuite in whole of business TurboSmart deal

    More In Enterprise IT

    News, Telecommunications - Apr 17, 2014 11:01 - 143 Comments

    Turnbull lies on NBN to Triple J listeners

    More In Telecommunications

    Featured, Industry, News - Apr 17, 2014 9:28 - 1 Comment

    Campaign Monitor takes US$250m from US VC

    More In Industry

    Digital Rights, News - Apr 17, 2014 12:41 - 15 Comments

    Anti-piracy lobbyist enjoys cozy email chats with AGD Secretary

    More In Digital Rights