Accenture has walked away from two contracts to deliver regional IT systems and services to the NHS. An alliance led by Computer Sciences Corporation (CSC) will take over the contracts, the companies announced today. CSC already has a contract to deliver services in another region.

CSC valued the two Accenture contracts at up to £1.97bn over nine years.

In March, Accenture said it had made a pretax provision of £240m to cover losses it expected to make on the two local service provider contracts, to implement and service regional IT systems in the Northeast and East of England.

Under the nationwide Connecting for Health program to modernise NHS IT systems, CSC already has a contract to deliver services in the North West and the West Midlands.

Under an agreement between Accenture, CSC and the NHS, Accenture has until 8 January to transfer its responsibilities to CSC.

Accenture and CSC had both turned to the same supplier, iSoft, for the software necessary for the project.

In January, iSoft said it would deliver the software late, and in June restated financial results because of questions over the way it booked revenue before delivering products.

Today, iSoft said it will remain the preferred supplier for the Northeast and East regions, and that it had settled outstanding disputes with Accenture.