HM Revenue & Customs (HMRC), the UK's tax authority, has agreed to channel all core external IT spend through it's contract with Capgemini. Capgemini will manage the contract via it's subsidiary, Capgemini UK plc, with major subcontractors Fujitsu and Accenture. The contract agreement follows a previous five-year contract and will run until 2017.

As part of the agreement a transformation program has been established that will see investment in modern, more flexible, technologies to better meet the needs of HMRC’s integrated organisation and drive cost savings, which will be realised from financial year 2011/12. Under the revised agreement, Capgemini, Fujitsu and Accenture have committed to save £110 million a year for HMRC, in addition to the £70 million per annum savings committed in 2007.

Lesley Strathie, Chief Executive, Permanent Secretary for HMRC said: “HMRC and Capgemini have worked together to achieve outstanding savings for the Department. This is just one of the ways HMRC will be reducing operating costs and it signals the intent to bring IT costs down as announced in the 2009 Budget."