HMRC’s Aspire IT outsourcing contract with Capgemini is beginning to deliver savings to HMRC and is likely to generate another £1.2bn in savings by 2017, a senior official claimed this week.
HMRC deputy chief information officer Mark Hall revealed the background economics of the 10 year Aspire contract at the Government ICT 2011 conference in London on Tuesday.
Many people didn’t understand what was happening within HMRC and the role IT was playing in transforming its strategy and reducing the UK budget deficit through more effective revenue collection, Hall told the audience.
“Our IT interacts with everyone in the UK and is critical part of the UK economy. Our online services have grown. On filing day we have been third busiest web site in the world. A lot of people will file over the last week. Across the whole of HMRC, we process over one billion transactions.”
The main plank of HMRC’s information and communications technology (ICT) was the Aspire deal, one of the biggest in the public sector, which accounts for 99% of HMRC’s IT spend. Capgemini is the prime contractor within an “ecosystem” that includes 240 suppliers, Hall said.
The rolling, 10-year IT outsourcing contract has been a source of controversy since HMRC removed the previous contractor EDS and selected the Aspire consortium. The original costs swelled over the original budget to more than £10bn, but have now been reined in, according to Hall.