Feeds

HMRC extends Aspire deal to 2017

Cost cutting drive

Intelligent flash storage arrays

HM Revenue and Customs (HMRC) has decided to restructure its IT outsourcing contract.

The move comes in response to HMRC's aim to cut its IT running costs by about 10 per cent by 2010-11.

The Aspire contract with Capgemini and other IT service suppliers was originally signed in 2003-04 and was due to run for 10 years. It will now be extended by a further three years to June 2017.

Commenting on the restructure, HMRC chief information officer Deepak Singh said: "The restructuring of the Aspire contract balances the need for HMRC to meet its commitments to cost reductions under the 2007 Comprehensive Spending Review without compromising our joint drive to become a world class IT function."

A spokesperson for HMRC told GC News that under the Comprehensive Spending Review the department had to reduce its annual operational costs by five per cent each year over the period 2007/08 to 2010/11. "We have plans to reduce our IT costs by about 10 per cent per annum, which will equate to a saving of about £100m per year by 2011," she added.

The original contract allows for an extension of up to eight years.

The move comes after criticisms of the contracting process. Aspire (Acquiring Strategic Partners for the Inland Revenue) was set up to replace the contracts Inland Revenue had with EDS and Accenture for IT services and the National Insurance Recording System (Nirs2) respectively.

When Inland Revenue and HM Customs and Excise merged in 2005, Aspire was re-competed. The newly formed department was concerned that potential bidders would see EDS as a rival they would struggle to beat. So, to encourage competition, HMRC decided to contribute towards bidders' costs.

The Public Accounts Committee attacked this move earlier this year, which resulted in HMRC paying Capgemini nearly £52m towards the cost of bidding for Aspire.

Speaking in June 2007, chair of the PAC Edward Leigh said: "There has been a very steep rise in HMRC's spending on IT services – the forecast figure is some £8.5bn over the 10 years of the contract compared with the original estimate of nearly £3bn."

HMRC will hope the new deal will help to erode some of the additional outlay.

This article was originally published at Kablenet.

Kablenet's GC weekly is a free email newsletter covering the latest news and analysis of public sector technology. To register click here.

Secure remote control for conventional and virtual desktops

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.