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HMRC spends £765m on IT outsourcing deal

9 Nov 2010 12:00 AM | Anonymous

New figures released by the tax-collection agency through freedom of information show its spending was dominated by two outsourced deals — Aspire for IT and Mapeley Steps, a PFI contract for the management of HMRC's property, which cost £333m in 2009-10. Overall, HM Revenue and Customs (HMRC) spent £1.75bn on suppliers in the last financial year.

The Aspire contract, which started in 2003 and will run until 2017, dominates the agency's spending with IT suppliers. The next largest is Specialist Computer Holdings, which received £20m in the last financial year, followed by BT, which received £15.2m.

Other IT vendors listed include Detica, which received £9.2m; Fujitsu (£7.2m); Airwave (£2.9m); Cable & Wireless (£2m); and Vodafone (£1.9m). Capgemini is listed as receiving £2m in its own right, outside the deal with Aspire.

"The figures do show again the reliance on key prime contractors by central government organisations," commented Chris Pennell, principal analyst at Kable. However, he added that it has been shrinking in terms of spending for some time. "This trend is unlikely to change given that there are some outside HMRC that view the deal as being ripe for breaking up. Other suppliers who already have a foothold into HMRC will be watching the changing landscape with interest."

Source: http://www.zdnet.co.uk/news/it-at-work/2010/11/09/hmrc-spends-765m-on-it-outsourcing-deal-40090795/

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