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By | Kat Hall 23rd October 2015 11:37

HMRC signs up Bain for £10.7bn Aspire migration

Other suppliers have dodged a bullet there, says analyst

HM Revenue and Customs (HMRC) has signed up global management biz Bain to migrate the department off its hefty £10.7bn Capgemini Aspire contract.

Under the deal, Bain will receive £20m from HMRC in order to work out a two-year exit plan for the government's "largest ever" IT contract.

Michael Larner, analyst at TechMarketView, said the department has a major challenge on its hands moving from one large system integrator and its sizable subcontractor to managing 400 smaller suppliers.

In anticipation of the move, HMRC has already begun the process of transferring over 400 Capgemini staff to a separately-run in-house body.

Larner said: "Over the next two years the eight unsuccessful bidders will probably look back and think that they have dodged a bullet, given the complexity of the task, the reputational risk for Bain, and the relatively low contract value."

The Aspire contract underpins the collection of £500bn tax income for the government. It has also generated £1.2bn in revenue for Fujitsu and Capgemini. It currently sucks up 84 per cent of HMRC's entire ICT budget.

UK lawmakers have warned Aspire – "the largest technology contract in government" – could be too risky to change as the department has failed to plan for a new contract model. ®

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