5,000 companies miss vital IT project deadline

Around 5,000 companies failed to implement the new software necessary to use the updated system for paying direct debits and salaries.

On 1 January the old payment system run by Voca was switched off and replaced with Bacstel-IP, which is designed to cope with a greater number of transactions.

Companies have been warned for several years to migrate to the new system, and those that have not will not be able to use the system to make payments until they upgrade.

Mike Hutchinson, Bacstel-IP marketing manager, told silicon.com: "We've got to a point where we have got all bar 5,000 companies on the new system - and about 102,000 are on the system.

"We've got about 5,000 companies that didn't move over by the deadline and the old system has definitely been switched off as planned."

He added: "We are pleased with 95 per cent but we're not complacent because five per cent didn't hit the deadline and that's somebody's payroll."

Despite the warnings from Voca many companies decided to leave migration to the last minute, he said: "There was a last-minute rush - December was a busy month for the software suppliers doing installations."

Of the 5,000 companies that didn't move over, some are dormant and others have simply decided not to move over. With these taken out Hutchison estimates there are around 2,000 - mostly small businesses - that will still want to use the service but haven't migrated yet.

He warned: "If they try to use the old software it won't work. What they must do is speak to their bank about the different options they have until they migrate to Bacstel-IP.

"Ultimately, [in] the worst case, they can offer cash or cheques but there's no reason it should come to that."

Read silicon.com's leader on the success of the project here.

Switching over to Bacstel-IP is the first stage in a massive IT refresh project.

Hutchison said: "It's the first part of a complete technical review called the Pentathalon Programme.

"What we are now doing as a business is renewing the technology stack that we've got, the actual payment engine that does the processing and various other releases."

But despite all the warnings, even some companies that were using payroll bureaux - and thus didn't have to do the technical work themselves - still missed the deadline.

He said: "Some bureau customers didn't move over and all they had to do was sign a form."

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