Six suppliers shortlisted for NHS HR system replacement

Six suppliers have been shortlisted for the new NHS electronic staff record (ESR) project – the largest HR and payroll software implementation in the world.

IBM, CSC, Atos, Tata Consultancy Services, Steria and BT/Accenture are bidding for the contract, with the list due to be cut to three by the end of this month.

ESR is currently provided by McKesson, which won a £325m deal in 2001. The original contract expires on 31 August 2014, but McKesson is not bidding for its replacement after selling much of its UK healthcare business to private equity firm Symphony Technology Group earlier this month.

McKesson has agreed a contract extension to November 2015, with its successor due to be selected by 14 September, according to the NHS ESR website.

ESR covers more than 1.2 million NHS employees and is currently based on Oracle’s E-Business Suite software. According to McKesson, the system has delivered more than £200m of benefits to the NHS during the current contract.

The ESR replaced more than 30 different systems previously in use. It includes functions such as recruitment, talent management, absence management, self-service and core human resources capabilities.