Accenture may drop iSoft from NHS work

The management of the troubled UK software developer iSoft came under further pressure yesterday after Accenture, a key contractor of its software for the £12bn upgrade to the National Health Service's IT infrastructure, suggested it might be prepared to use another supplier on the project.

John Weston, the chairman and interim chief executive of iSoft, is already grappling with a renegotiation of the company's banking arrangements as well as a rejig of the NHS contracts. Over the past six months, iSoft has lost about 80 per cent of its market value after several profits warnings and restating its previous accounts to reflect a change in its accounting policy.

As if Mr Weston did not have enough on his plate, Accenture has cast doubt over iSoft's future involvement in the NHS upgrade. Bill Green, Accenture's chief executive, told analysts on a conference call after its third-quarter results: "We are watching the iSoft situation closely ... we have a series of alternatives that we can take forward."

The loss of the two Accenture contracts could result in a loss of about £200m in revenue for iSoft. ISoft reported revenue of £262m in 2005.