The programme for the introduction of national ID cards is looking increasingly uncertain, as potential suppliers Accenture and BAE bowed out of the ID card bidding process.

Dominic Trott, a consultant at Pierre Audoin Consultants (PAC) said that the exit of Accenture and BAE highlights the fact "suppliers are feeling shaky”.

Graham Titterington, Ovum analyst, added, “Companies are becoming doubtful [about the ID cards scheme] due to large costs, political doubt and the risk of not winning a contract.”

The £5.4bn project is set to be delayed to 2012, a further two years after the set milestone of 2010. The scheme is also under jeopardy due to the recent public sector data losses which have created a lack of trust in the government’s ability to securely manage databases.

Rumours have been circulating for some time that suppliers on the long-list for the programme are becoming frustrated by government indecision. However, the Home Office insists that the remaining suppliers on the list are still very much interested in the project.

“The UK visa project demonstrates a success as targets were on time and on budget, this is now a good stepping stone to the next stage of development for the ID card,” said PAC's Trott. The government is keen to highlight all signs of progress in order to keep the remaining suppliers involved in the national scheme, he added.

Trott suspects there will be a change in tone from the government in regards to how large-scale the project is going to be. “The ID card having 49 different identity factors is likely to be reduced,” he said.

"You can have all the technology in the world, but if for instance something is lost in the post, there is nothing you can do about it. It is all about changing culture, bringing in a strong process which everyone follows," he added. "This also brings an opportunity for IT suppliers, as training programs can be set up.”

Titterington argued that IT and physical security needs to work together better in organisations. "Smart cards for example, can be used by businesses, helping deal with factors such as forgotten passwords and calls to the helpdesk, which waste money,” he added.

Titterington also questioned whether the ID card scheme could really achieve proposed benefits such as reducing the number of illegal workers. “It is too premature to say it’s the beginning of the end for the ID card. However in my opinion none of the justifications for the ID card stack up.”