HMRC's 10-year IT contract balloons to £8.5 billion

Kashflow logo
Share this content

The total cost of HM Revenue & Customs' 10-year ASPIRE IT outsourcing contract has more than doubled since the contract was awarded in 2004, and Capgemini's profits are likely to quadruple, according to a Commons Public Accounts Committee report. John Stokdyk reports.

The PAC followed up last week's analysis of government IT projects with a report looking at how the Inland Revenue conducted the tendering and transition from the previous supplier, EDS, to the new Capgemini consortium.

While couched in remarkably restrained language, the amounts involved in the project tell their own story. The original bid from the Capgemini Ernst & Young consortium was £2.83 billion, based on the department's 2003 estimate of its needs. The department&#39...

Please Login or Register to read the full article

The full article is available to registered members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.


Please login or register to join the discussion.

By redsq01
13th Jun 2007 22:01

Excuse my Language
What else can you expect from the Brown Shirts

B*stardery and stupidity at the same time in unparalled quantities

Bring on Bulgaria Brown

Thanks (0)
14th Jun 2007 16:08

After dopey Dawney described IT contractors as "crooked" did they expect a different result?

My heart bleeds...

Fiasco is too small and far too inoffensive a word. Does anyone cry publicly, to show humility? Do any of them have any morals left?

Thanks (0)
By NeilW
14th Jun 2007 16:36

Can somebody explain to this thicko how outsourcing in this sort of deal helps anybody?

Surely HMRC is so massive that it would be much more cost effective to buy directly in the market place. You'd save the tendering cost for starters.

Are the shackles on the public sector so tight that it is cheaper to pay for all the sharp suited salesmen and bid writers than just hire the right staff themselves and cut out the politics.

Or did they fall for the sales pitch?


Thanks (0)
14th Jun 2007 17:03

Am i missing something







On a head count this equates to £200,000 annual running costs per employee.

Phew!! Show me the money!!!!

Thanks (0)
15th Jun 2007 13:24

we told you so
The process was launched in the face of total opposition from the Revenues own IT staff who specifically warned
1 The costs would be far in excess of keeping it "in house"
2 The service would see little if any improvement

Its what you get when you place innumerate technophobes in charge of organisation

Thanks (0)
By redsq01
15th Jun 2007 22:34

innumerate technophobes
No wishing to say I told you so but I told you so in a Butler Group paper in 2000 that outsourcing was unlikely ever to deliver a "reasonable" never mind optimum outcome because it is based on a (usually complete) lack of understanding of the role of information management in business processes. I believe that the evidence is now in from many different sources

The innumerate technophobes referred to below are the usual suspects ie. the drones that are employed by large institutions or organisations to dance to the lastest management mantra. Witness the latest "herd" behaviour in retail banking where all the branches that were shut seven years ago are now being re-opened by a new generation of ruminents.

These sheep are usually the dim-witted fodder of MBA classes or dismal CFO's whose lack of intestinal fortitude is only matched by their total inability to think for themselves.

Thanks (0)
19th Jun 2007 20:33

UK, population 60,776,238 (July 2007 est). Cost of HMRC computer system 8.5 Billion pounds.

USA, population 301,139,947 (July 2007 est). Cost of IRS computer system 8.5 Billion dollars.

The USA publishes IRS minutes of meetings under their Freedom of Information Acts. We hide ours in dark corners of the Treasuries archives. Is there is something thick about all of this, apart from my comment that is.

Anybody up for the Math?

Thanks (0)