The Post Office has decided to extend its contract with Fujitsu while it waits for updates on the Horizon software replacement project. This contract now runs until at least March 2026.
Despite some reports, the Post Office insists no decision has been made regarding the in-house New Branch IT (NBIT) project. Recently, they cut ties with some third-party suppliers and contractors as they reassess their strategy for replacing Horizon.
In October, Computer Weekly reported that NBIT was likely to be scrapped, but the Post Office’s IT leader indicated that a decision will be made in the new year. A source close to the project suggested it’s only a matter of time before they opt for an off-the-shelf system instead.
At a public inquiry earlier this year, Nigel Railton, the new Post Office chairman, pointed out that building a system in-house was a major reason for the project’s failure. He recounted hearing numerous “horror stories” about similar efforts, saying the initiative was doomed from the start.
In May, it came to light that the NBIT project was not only behind schedule but had also overshot its budget by £1 billion. A government report labeled it “unachievable.” More recently, in an interview with Computer Weekly, Andy Nice, the Post Office’s new IT chief, acknowledged the seriousness of the NBIT situation, stating they got permission to hit pause at the start of October. He assured that a decision would be made before the new financial year starts in April 2025.
Initially, when the Post Office sought an off-the-shelf electronic point of sale (EPOS) system to take over from Horizon, supplier Escher was selected as the preferred bidder. However, the previous IT leadership chose to develop the system in-house instead.
During the ongoing inquiry, it came to light that allegations were being investigated regarding NBIT project staff, including Chris Brocklesby, Nice’s predecessor. They allegedly misrepresented other options to create the Horizon replacement.
An internal report released during the inquiry revealed an investigation—dubbed Willow2—that’s scrutinizing claims that the tech teams misled executives by presenting information in a biased way to achieve certain results.
The Post Office scandal first gained attention in 2009 when Computer Weekly reported on the harrowing experiences of seven subpostmasters who suffered because of the faulty accounting software.