Rachael Singh, Accountancy Age, Wednesday 14 July 2010 at 10:17:00

The Insolvency Service IT downtime has been delayed for a second time, withthe government body hoping it will go ahead in August

The Insolvency Service has delayed its planned shutdown of IT services at itshead and official receivers' offices again, with no date set for reschedule.

The government agency is currently upgrading all its IT systems which meantall its technology would go offline for a period of ten days.

Initially the shutdown was due to run from 2 July to 12 July, however, justtwo weeks before this date it was delayed to 16 July to 26 July. The InsolvencyService now hopes the downtime period will commence in August.

A spokeswoman for the Insolvency Service said: "The ISCIS application is nowfully built but the final stage of testing has been delayed. As a result theService has decided to postpone the planned down time which was due to begin on16 July 2010 until the final stage of testing is complete, and we are confidentthat the applications are stable and fit for purpose."

During the IT downtime insolvency practitioners' requests for payments, onbehalf of creditors, to the Office Receiver will not be processed. The OfficialReceiver pays out approximately 19m a week to creditors.

Implementing the IT services project, "Enabling the Future", was due to costmore than 80m over five years. The Insolvency Service said the new delay wouldnot increase the cost of the project beyond what was already budgeted.

Advisers have previously raised concerns the IT system would be shut downaltogether, rather than running two systems concurrently prior to switching offthe old technology.

Further reading:

InsolvencyService IT upgrade delayed

InsolvencyService system upgrade will hit creditors

InsolvencyService backs OFT claim that practitioners charge too much