IT firm suffers £7 million loss due to unsuccessful IT undertaking
NCC Group, a Manchester-based provider of IT security, risk, testing services, software testing, and software consultancy, has decided to revert back to its old IT system after a failed internal project that incurred an estimated £7 million charge.
The new system, intended to provide a complete integrated solution for all NCC Group's business processes and serve as a systems backbone for growth in Europe and North America, was initially slated to be developed by SAP. However, the project encountered significant issues or was unable to be successfully implemented, leading to the decision to revert.
Last year, NCC Group's revenues were £71.0 million, and its pre-tax profit was £17.4 million. The legacy systems to which NCC Group has now reverted are from Sage.
The board of NCC Group has decided to revert back to the previous group-wide IT system while determining whether the issues can be remedied. No further detailed explanation or official statement from NCC Group was found in the provided data.
CEO Rob Cotton stated that the decision to revert to the old system was a frustrating one, as considerable time and resources had been invested into the new system. The failure likely reflects common large-scale IT system risks such as integration difficulties, cost overruns, or user adoption issues. The estimated £7 million charge strongly indicates significant sunk costs related to the attempt [search results do not directly specify but inferable from context].
If you require more precise or updated information, consulting NCC Group’s official statements or reliable news sources would be necessary.
The new business project, aimed at integrating all NCC Group's processes and fostering growth in Europe and North America, was supposed to be developed by SAP. However, due to a series of issues that hindered successful implementation, the company has reverted to its legacy Sage IT system, now scrutinizing ways to address the problems encountered.
Despite the revamped system being intended to improve finance management, the £7 million charge incurred suggests substantial financial losses associated with the project's failure.
