Taxman exploring offshore IT options
The British taxman has enlisted its two main IT contractors to assess the viability of offshoring, in a move that could pave the way for tax forms to be processed overseas.
HM Revenue & Customs approached Capgemini and Fujitsu six months ago about its Quantum project – an internal initiative to yield savings, mainly in IT, of £205million.
Disclosures about the project, which HMRC will issue a report on next month, reportedly reveal its objective is to cut the cost of its £8.5million Aspire programme.
Although the outsourcing of the project to Capgemini was intended to reduce department expenditure on IT, costs from the contract have doubled since HMRC signed it in 2004.
Having, then, underestimated the future costs of supporting its IT needs, HMRC is now hoping Capgemini, which has six divisions in India, can suggest ways to economise.
Yet HMRC headed off claims that Aspire was destined for abroad, as it told the Telegraph newspaper that the contract “does not permit” IT services to be provided outside of the UK.
But privately, the agency has said part of its £205m saving, noted as a “challenge,” will come from reshaping the deal between the Aspire consortium and HMRC, Computer Weekly said.
Based on a series of official documents, the magazine’s disclosures add that Quantum, of which Aspire will be central, includes a look at the “potential offshoring of some future work.”
The six-pronged plan will involve improving the supply-side of its IT network, restructuring it for optimum efficiency and value, standardising it and tailoring it to “HMRC the customer.”
According to the disclosures, Quantum is also considering “alternative delivery arrangements” including a review of “contractual constraints of Aspire’s outsourcing activities.”
Meanwhile, HMRC is looking at setting up some of its ‘IT framework’ in India, the Mail reported, which may spell the end of UK policy not to export sensitive data offshore other than in an emergency.
Aug 6, 2009
Further Information:
Relevant Groups on Linked In: IR35 News Group and IT Contractors UK Jobs Group
RSS Feeds: did you know that you can subscribe to this blog via RSS and also receive our latest IT jobs by RSS.
Article Source: Contractor UK
Tags: hmrc, HMRC I.T. Contractors, hmrc offshore I.T. Options, I.T. Recruitment News