HMRC Is Shite

HMRC Is Shite
Dedicated to the taxpayers of Britain, and the employees of Her Majesty's Revenue and Customs (HMRC), who have to endure the monumental shambles that is HMRC.

Tuesday, 20 October 2015

HMRC's £20M IT Tender


HMRC recently launched a £20M tender for consulting firms to guide its IT department.

HMRC wants increased control over projects, as well as increased competition lowering profit-making. The current contract with Capgemini ends in 2017 and, theoretically, HMRC wants the new changes up and running by then.

Currently Capgemini co-ordinates HMRC's main sub-contractors Fujitsu and Accenture. However, aside from issues highlighted by a 2014 National Audit Office report, recent benchmarking studies also show that of the around £10BN (yes you did read the figure correctly!) the project is expected to cost by 2017, Capgemini will be making 16% profit (ie £1.2BN).

FACTOID: The original profit projection was a "mere" £0.5BN!

Under the new procurement system, HMRC will seek to have its IT systems managed by up to 400 IT subcontract suppliers, with no contract worth more than £100M.

However, as Consultancy UK notes, not everyone believes however that bringing in a large number of small players will improve the quality of service or lower operating costs. Mark Dearnley, HMRC's Chief Information and Digital Officer, says that getting rid of Aspire for a new system could itself cost up to £600M.

Additionally, the government’s Chief Commercial Officer Bill Crothers warns that if wide-ranging changes are to be made then planning needs to start early:
This is enormous, risky and important, and that should guide what we do. Sitting behind this is getting better capability, being a better client and doing things in a phased way as much as possible...we should not be complacent.
When has a government department ever fucked up an IT project?

Oh, hang on......

Tax does have to be taxing.

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