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Publish Date : 19-Oct-2015

The HMRC has released a 20 million tender for consulting companies to guide its IT department in a move away from a one sized mega-project IT system run by a single main contractor to one that is open to many smaller and mid-sized IT contractors.

The decision results from enhanced control over projects, as well as increased competition reducing profit-making.

The department would make the changes by 2017, when its existing contract with Capgemini ends.

The HM Revenue & Customs (HMRC) has gone for a single player mega-contract approach for its IT needs, since the mid-1990s. The initial contract going to EDS, followed by Capgemini's Aspire IT framework which started last year and is contracted to run until 2017.

While a single contract approach has advantages such that the main sub-contractors Fujitsu and Accenture are all organized by Capgemini issues have also been raised by the approach.

A 2014 National Audit Office report shows that giving full control of IT to a single contractor has led the department to lose direction and control of its ICT, among other issues.

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