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HM Revenue & Customs restructures IT contract to save cash

Antony Savvas

HM Revenue & Customs (HMRC) has agreed a restructuring of its Aspire IT outsourcing contract to save cash. HMRC is aiming to cut its IT running costs by around 10% by 2010-2011.

Deepak Singh, HMRC CIO, said, "I am delighted that we have been able to secure such a positive outcome that further strengthens our commitment to working with Aspire over the coming years."

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 drive to become a world class IT function", said Singh.

The contract is being extended by a further three years to 2017 as a result. Aspire is HMRC's contract with Capgemini and a number of other "ecosystem" suppliers for the provision of IT services.

The contract was originally signed in 2003/2004 and replaced the contracts the Inland Revenue had with EDS and Accenture for IT services and the National Insurance Recording System (NIRS2) respectively.

Following the merger of Inland Revenue and HM Customs & Excise in 2005, the latter's IT services contract with Fujitsu was incorporated with Aspire in April 2006.

The existing contract term was for ten years and was due to end in June 2014. The contract has been extended by three years to June 2017.





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