6 The framework which the Department uses to manage the risks associated with commissioning new work from EDS is basically sound and should ensure that value for money is achieved if the steps in the process are followed consistently. Pressure to deliver an increasing workload to demanding timetables has led to closer working with EDS on the development of information technology solutions to business requirements and has increased the importance of effective risk management. The Department has identified, and is addressing, most of the key risks.
7 Recommendations for further improving the Department's management of risk include:
■ making a formal assessment of the risks attached to closer working with EDS in the rapid development of information technology solutions;
■ formalising the criteria for deciding when to refer EDS proposals to the Department's information technology experts for scrutiny;
■ improving project managers' understanding of the contract's complex pricing mechanism to reduce the risk of nugatory expenditure; and
■ tightening up post-implementation and hand-over procedures to ensure that live running of new systems can be monitored effectively.