Confidential HMRC "Quantum" papers on cost-cutting plan

Confidential papers on Project Quantum, a plan to cut costs at HM Revenue Customs by at least £205m a year, have reached me.

The papers are the joint works of HM Revenue and Customs, Capgemini and Fujitsu, the three main partners in the Aspire contract.

This is what some of the papers say about Project Quantum:

“Aspire has been fully engaged with IMS [information management solutions – part of HMRC] trying to meet the three Quantum objectives since early April.

“During [this] time the nature of the challenge and potential for solutions has clarified.

“Aspire is absolutely committed to continue the journey to deliver success for HMRC on Quantum.


“We have no doubt that the most expedient route to success will be mutual collaboration.

“We sincerely trust we are able to conclude a mutually acceptable way forward.

“Where we are

“Together we now believe we can achieve >£205m saving – this is balanced across price, volume and changes to ways of working

“Successis predicated upon complex dependencies – so any arrangement has to betreated as a bundle. Many things need to be done in parallel – needdo-ability check when choices [are] clear.

“We need to createheadroom to fund essential change – neither HMRC or [sic] Aspire hasadditional cash to do this. We believe there is a solution but itcomplicates the dependencies. Early savings drive investment pot forsubsequent work. Timing [is] critical again.

“This remainsextremely complex and there is still more refinement to do. Final sensecheck between all parties [is] needed, particularly in the area ofCCN600 and its application.” [CCN600 was the change notice related to aprevious bout of cost-cutting known as the ‘Aspire Challenge’.]

Links

Sensitive tax work may go abroad as HMRC seeks to cut outsourcing costs – Computer Weekly

HMRC to offshore tax work to India? Follow-ups by The Times, Telegraph and Daily Mail – IT Projects blog

Did HMRC scrap offshoring plan after leak to the media? – IT Projects blog

Taxman denies India outsource claim – Yahoo

HMRC to outsource sensitive tax work? – Details of Quantum project – IT Projects blog

Aspire contract – Capgemini website

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You're reporting is well out of date - the document you refer to was produced over 10 weeks ago. The world has moved on greatly since then ...

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As the Quantum project documents are marked "Restricted - Commercial" you are in the know.

The documents referred to some of the challenges facing Capgemini, Fujitsu and HMRC as they try to make savings of £205m a year on HMRC's IT budget. A report on the Quantum team's findings is due next month.

You say that the world has moved on greatly since the documents were produced. If you could let me know in what way I'd be grateful.

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They don't need to outsource. There are lots of Indian IT companies who send their workers to the UK for a 6mnth holiday stint. They are treated as Inward Expats and they come and go over a period of four years so they never achieve full residency and pay nowt! In fact they get sent home with a repayment courtesy of their employers.

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