What's Happening?
The Post Office has extended its contract with Fujitsu for the Horizon IT platform by one year, spending nearly £50 million to ensure continuity while transitioning to a new supplier. The extension, which may be further extended by another year, is necessary
to avoid service disruption and manage the transition process. The Horizon system, a legacy platform first signed in 1999, is integral to the Post Office's operations, covering financial services, banking, government services, mails, and retail. The contract's total value has reached nearly £3 billion, significantly higher than the initial projection.
Why It's Important?
The extension of the Horizon contract underscores the challenges faced by organizations in managing legacy IT systems. The Post Office's decision to continue with Fujitsu highlights the complexities and costs associated with transitioning to new technology, including potential service disruptions and data migration issues. The reliance on an aging platform raises concerns about technological adaptability and the need for modernization to meet current business needs. The situation reflects broader issues in the public sector regarding IT infrastructure and the importance of strategic planning for technology upgrades.
What's Next?
The Post Office is engaged in a procurement process to appoint a new supplier to replace Fujitsu and its Horizon platform, with plans to conclude by summer 2026. The transition to a new system will require careful planning to ensure continuity of service and address technical challenges. Stakeholders, including employees and customers, may experience changes in service delivery as the Post Office navigates this transition. The organization will need to balance the costs and benefits of maintaining the legacy system versus investing in new technology.
