On-Prem

Public Sector

Capgemini to keep the legacy lights on at HMRC for £245.5M

That's half a billion from generous taxpayers in 2.5 years


The UK's tax collector has awarded tech consultancy and service provider Capgemini a contract worth up to £245.5 million to keep legacy systems up and running.

The award brings the French outsourcer's potential windfall from His Majesty's Revenue and Customs (HMRC) to nearly half a billion pounds in the last two and a half years, and extends a sometimes controversial relationship in place for 20 years.

HMRC has one of the largest and most complex IT estates in Europe with over 600 systems, 800 terabytes of data, 1,000 IT changes a month, and a 24/7 IT operation. It serves 45 million citizens and more than 5 million business taxpayers.

Tender documents reveal Capgemini has won work under Lot 3 of the Digital & Legacy Application Services framework.

The contract is designed to help address the management of new or existing custom applications and middleware, including APIs, API platforms, and enterprise service buses.

This latest agreement adds to a string of HMRC contract wins for Capgemini. They include a £51 million arrangement inked in January 2022 to support HMRC's Enterprise Tax Management Platform (ETMP) Enterprise Operations (EOPS) Run & Associated Change Services as a sole supplier under a single lot.

In March 2022, HMRC extended a Capgemini deal in a £215 million contract, which awarded the outsourcer work to look after tech provided under the controversial 2004 Aspire contract at least eight years beyond the first proposed end date for it. The contract will have a duration of three to five years.

Capgemini began work to build and support the systems under the controversial £10 billion Aspire contract, a joint venture between with Fujitsu and HMRC first signed in 2004. According to a 2016 report from government spending watchdog the National Audit Office, HMRC initially planned to extend deals related to Aspire – which was supposed to end in 2017 – only until 2020.

At the time of the further deals, a spokesperson from HMRC said neither of the more recent contracts was a continuation of the Aspire deal, which was said to end on June 30, 2022.

The latest agreement comes under the DALAS framework, an arrangement with tech suppliers worth up to £4.5 billion in total. The consultation began for the deal in August 2022.

In September 2023, the government named Accenture, Capgemini, and IBM among the winners of Phase 1 of DALAS.

In April, the final slots on DALAS were offered to Accenture, Atos, Capgemini, CGI It, Cognizant Deloitte, and others under contracts collectively worth up to £2.8 billion. Since then, other awards made under the framework include contracts going to Netcompany (£75.3 million), IBM (£75.3 million), and Accenture (£151 million).

In these times of slowing growth in the private sector, it is great to see British taxpayers topping up the funds for tech providers in the public sector. Just great. ®

Send us news
20 Comments

Labour wins race to lead UK, but few would envy the load in its tech in-tray

Looming train wrecks face winning party after it promises investment and innovation

Tax helpline callers left on hold for nearly eight centuries

HMRC forgot to tell Brits about its digital support channels

HMRC must grow 'intelligent client' function to sort out post-Brexit tech issues – watchdog

Already delayed, IBM and Deloitte's 'Single Trade Window' presents SaaSy challenge's to tax collector

Fujitsu's 30-year-old UK customs system just keeps hanging on

After declaring the end of CHIEF at least five times in as many years, HMRC hopes this June 2024 date will stick

UK agriculture department slammed for paper pushing despite tech splurges

Defra is counting contractors like sheep

Good news: HMRC offers a Linux version of Basic PAYE Tools. Bad news: It broke

Python 2 has been dead for four years

UK tax agency's digital services not good enough to take strain off phone lines

Watchdog says taxpayer assistance is getting worse

HMRC launches £500M procurement for new ERP, though project's already a 'red' risk

Rivals will need to dislodge incumbent SAP in competition for 5-year deal across three departments

Taxing times: UK missed out on £1.75B because of digitization delays

Public Accounts Committee slams progress and questions plans

Kyndryl bags short-lived HMRC mainframe contract

Tax collector's DALAS waits in wings to tackle humongous legacy estate

UK government awards chunk of mega-billions tech framework

Deal for tax collector’s legacy application services goes to troupe of suppliers including Accenture, Capgemini and IBM

Digital revolution at HMRC left 99,000 UK taxpayers on hold over five-day fiasco

Technology resilience gets red rating in tax collector's annual report