The State Government is considering sacking bureaucrats who were named and shamed by the Commission of Inquiry into the Queensland Health payroll debacle.

The payroll failure has cost taxpayers more than $1 billion.

The inquiry found the former Labor government settled with IBM when it could have recovered more money through legal action, but did not criticise the decision.

It found the health payroll debacle was partly the fault of public servants, who failed to manage the project properly.

The inquiry says department directors-general capitulated when negotiating with IBM, with the State Government making a timid and ineffectual response to the payroll failure.

Some of the public servants are still employed by the Queensland Government.

The ABC understands the State Government will put forward a motion in Parliament tomorrow on taking 'strong action' against those named in the inquiry's findings, which could include sackings.

The inquiry found the Queensland Government cannot recover any money from IT company IBM for the failure of the payroll system and it will face no legal action.

However, Parliament is likely to debate a motion to stop awarding contracts to the IT company unless it proves it has acted to prevent similar problems in future.

Meanwhile, IBM has disputed some of the findings of the inquiry.

The company says as the prime contractor for the upgrade, it bears some responsibility.

But it says most of the blame belongs to bureaucrats who did not tell the company what they need or fix the scope of the project.

The former Labor Government surrendered its ability to sue IBM for breach of contract when it settled with the company after the failure.