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04 November 2014

HMRC to save £200m per year by scrapping Aspire outsourcing deal

HM Revenue & Customs (HMRC) expects to save more than £200m a year by abandoning its Aspire IT outsourcing contract when it expires in June 2017. Aspire is one of the biggest IT outsourcing deals ever signed by the UK government, costing on average £813m per year over the past 10 years, according to the National Audit Office (NAO). By the time the deal ends in June 2017, prime contractor Capgemini will have received £10.4bn of taxpayers’ money. HMRC is planning for the end of the contract, and expects to publish its business case in Spring 2015, according to HMRC permanent secretary Lin Homer, speaking at a meeting of the House of Commons Public Accounts Committee (PAC) this week. But Mark Dearnley, HMRC’s chief digital and information officer, told MPs on the committee that significant cost savings are expected by replacing the single-supplier outsourcing model of Aspire. “We think that by the time we have done the entire transition and looked at the run rate for IT within HMRC, the total cost base will have come down more than...

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