Feeds

HMRC snatches back £200m in Aspire outsource rejig

Revised deal gives taxman more 'control'

Build a business case: developing custom apps

HM Revenue and Customs will save more than £200m by 2017 after renegotiating its Aspire outsourcing contract with Capgemini, according to Cabinet Office minister Francis Maude.

The Aspire deal covers IT services including desktops, laptops and a number of tax and credit systems such as online VAT filing. The contract, which is led by Capgemini and includes some 360 other suppliers, was renegotiated in January.

As well as lowering the cost per unit of IT services, the renegotiations will give HMRC greater control over the volume of work going through Aspire, according to the Cabinet Office. The department will also be able to control the Aspire subcontractors directly – previously the responsibility of Capgemini.

"The negotiations have also given Capgemini the opportunity to adapt its services and delivery model to align much more closely with the government's ICT strategy and its drive for a more competitive IT market place," the Cabinet Office said.

"No longer do we have a unique SI relationship with Aspire and Capgemini," HMRC CIO Phil Pavitt told the all-party Parliamentary group on outsourcing and shared services today. "We have introduced competition at all levels. There's no longer exclusivity between us and our partners."

The original Aspire – Acquiring Strategic Partners for the Inland Revenue – contract was signed by the Inland Revenue in 2004. It was agreed for 10 years and was worth nearly £3bn. The deal has been regularly revised and extended since then, including revisions in 2008 and 2009.

HMRC's spending through Aspire has fallen in recent years: it decreased from £765m in 2009-10 to £721m in 2010-11.

HMRC has reduced its spending on IT from £1.4bn to £700m in two years, according to Pavitt.

This article was originally published at Guardian Government Computing.

Guardian Government Computing is a business division of Guardian Professional, and covers the latest news and analysis of public sector technology. For updates on public sector IT, join the Government Computing Network here.

Gartner critical capabilities for enterprise endpoint backup

More from The Register

next story
True fact: 1 in 4 Brits are now TERRORISTS
YouGov poll reveals terrible truth about the enemy within
Hello, police, El Reg here. Are we a bunch of terrorists now?
Do Brits risk arrest for watching beheading video nasty? We asked the fuzz
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
UK government accused of hiding TRUTH about Universal Credit fiasco
'Reset rating keeps secrets on one-dole-to-rule-them-all plan', say MPs
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
NBN Co claims 96 mbps download speeds for FTTN trial
Umina trial also delivers 30 mbps uploads, but exact rig used not revealed
Yes, but what are your plans if a DRAGON attacks?
Local UK gov outs most ridiculous FoI requests...
Felony charges? Harsh! Alleged Anon hackers plead guilty to misdemeanours
US judge questions harsh sentence sought by prosecutors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
BYOD's dark side: Data protection
An endpoint data protection solution that adds value to the user and the organization so it can protect itself from data loss as well as leverage corporate data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?