Friday, October 18, 2024

Post Office Plans to Discontinue In-House Developed New Branch IT Software

The Post Office is clearly reassessing its strategy for the New Branch IT (NBIT) system. Initially, they aimed to develop the software in-house, but now it looks like they might abandon that plan entirely, leaning instead towards a commercial electronic point of sale (EPOS) solution.

The NBIT project is not just behind schedule; it’s also grossly over budget. The original intention was to replace the problematic Horizon IT system tied to one of the biggest miscarriages of justice in UK history. Now, insiders say the Post Office may pivot away from in-house development. They might shift to a pre-packaged system from a supplier or even consider integrating the existing Horizon system with new management.

A source, who wished to remain unnamed, indicated that the Post Office is eyeing the EPOS platform by Escher—the same company behind previously employed systems for Horizon. Some within the IT department even support the idea of taking the controversial Horizon system and managing it internally. Although no final decision has been reached, it seems likely that the in-house NBIT software will be scrapped.

Recently appointed chairman Nigel Railton contributed to the conversation during a public inquiry, stating that the choice to develop the software in-house was one of two critical missteps that led to the project’s shaky start. He mentioned horror stories from other companies that attempted similar in-house builds. His comments highlighted a strong belief that this project was doomed from the beginning.

In response to inquiries about possibly shifting away from their in-house development, a Post Office spokesperson emphasized the importance of providing effective tools and systems for postmasters to enhance customer service. The search for solutions has been broad, including input from various stakeholders to improve the digital experience for local branches.

When the Post Office initially looked into replacing Horizon, they explored the option of buying versus building the new system. Back in 2022, they invited multiple EPOS suppliers to pitch their solutions. Escher came out as the preferred choice, along with OneView. However, they ultimately decided to start an in-house development project as a proof of concept, which ended up as a full-scale endeavor. Even then, they kept the door open for a purchased solution if building in-house didn’t pan out.

By April, things seemed to be moving forward; the Post Office was on the lookout for software developers and offered contracts worth up to £75 million over three years. They looked at various areas, including financial analysis and accounting software, partnering with firms like Accenture and Coforge along the way. Yet, the NBIT program soon encountered serious snags. By May, a review from government project management experts judged the project as “currently unachievable,” with costs ballooning from an initial £180 million to an eye-watering £1.1 billion—pushing delays out by as much as five years.

Now, insiders suggest that there’s a growing sentiment within teams that sticking with in-house development may be key to the Post Office’s future success. Even with significant concerns regarding costs, some believe that these challenges stem from issues within the culture of the Post Office itself. If the culture doesn’t evolve, they risk repeating the same mistakes.

A recent document from acting CEO Neil Brocklehurst confirms that changes to the NBIT program are on the table. The Post Office is evaluating its delivery of new technology to ensure it meets the needs of postmasters more effectively. Next week, they plan to start reassessing the NBIT program, although critical investments in Horizon’s infrastructure will continue.

Also noted is that the NBIT team has been instructed to pause any further development until a clearer direction emerges. Frustration is palpable among staff, leading to whistleblowers stepping forward.

Railton also assured during the inquiry that he’s optimistic this project could wrap up by 2028 without exceeding the current £1.1 billion budget.

The Post Office scandal first drew attention in 2009, when Computer Weekly reported on the harrowing experiences of seven subpostmasters affected by the Horizon software, shedding light on one of the largest injustices in British legal history.