HM Revenue and Customs spent 44 per cent of its 2009-10 supplier budget through its IT outsourcing deal led by Capgemini.
New figures released to Kable by the tax-collection agency through Freedom of Information show that its spending was dominated by two outsourced deals – Aspire for IT and Mapeley Steps. Mapeley Steps is a PFI contract for the management of HMRC's property, which cost it £333m in 2009-10. Overall, HMRC spent £1.75bn with suppliers in the last financial year.
Aspire, which started in 2003 and will run until 2017, dominates the agency's spending with ICT suppliers. The next largest is Specialist Computer Holdings, which received £20m in the last financial year, followed by BT, which received £15.2m.
Other ICT vendors listed include Detica, which received £9.2m; Fujitsu with £7.2m; Airwave with £2.9m; Cable & Wireless, which received £2m; and Vodafone, which received £1.9m. Capgemini is listed as receiving £2m in its own right, outside Aspire.
"The figures do show again the reliance on key prime contractors by central government organisations," said Chris Pennell, principal analyst at Kable. However, he added that it has been shrinking in terms of spending for some time. "This trend is unlikely to change given that there are some outside HMRC that view the deal as being ripe for breaking up. Other suppliers who already have a foothold into HMRC will be watching the changing landscape with interest."
This article was originally published at Kable.
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