Website Development Failure, Oracle Gets Sued By The Oregon State
Software developers face a lot of issues while developing software for an enterprise or a government, especially when there is a large communication gap between developers and the management team from the enterprise’s side. Developers need to have a clear-cut idea about the requirements of the software to be developed so that they could successfully deliver what the enterprise wants.
There have been a lot of disputes among the development team and the management team over software failure. The latest victim is Oracle Inc. who promised to develop a website for Oregon state’s online health insurance enrollment but never did.
The website was known as Cover Oregon but it was never launched. As a result, state was forced to hire hundreds of workers to do the paper work manually. The reason behind its failure seems to be misunderstood requirements as Oracle stated that the state didn’t cooperate with them during the development of website.
But why sue Oracle Inc.? Because Democratic Gov. John Kitzhaber is running for re-election and the website’s failure is affecting the governor’s political position.
Oregon state and Oracle have been working on projects other than this failed website too. Another project, on which Oracle was working to modernize functions for social services, was also tossed out. Oregon state paid Oracle $240 million for both projects.
Now as Oracle is being sued for “lies, breaching contracts and engaging in a pattern of racketeering activity,” the state is seeking damages as high as $240 million and penalties as high as $480 million.
“Over the course of our investigation, it became abundantly clear that Oracle repeatedly lied and defrauded the state,” said Attorney General Ellen Rosenblum, a Democrat, in a statement.
Oracle on the other hand has blamed the state for the failure stating that state’s incompetent staff was not able to handle a complex IT project. They blamed the state for not hiring a systems integrator, who integrates various technology components.
However, the state said in the lawsuit that it was Oracle who persuaded them to not hire a systems integrator as Oracle had provided project managers to maintain control over the development process.
“Today, after months of investigation, the attorney general’s findings go well beyond disappointing and incomplete work,” Kitzhaber said in a statement. “The complaint filed contains serious new allegations of fraud, deceit, and corruption by Oracle.”
It is unclear yet whether Oracle has lied to the government of not, but according to the investigations held by Attorney General Office, the fault lies within Oracle. The matter is being investigated by FBI and Government Accountability Office as well.