PracticeConsultingEDS may lose £4bn Revenue contract

EDS may lose £4bn Revenue contract

Government outsourcing stalwart EDS may lose its £4bn IT contract with the Inland Revenue, according to comments made by the Revenue's IT director.

John Yard, the Revenue’s IT director, told AccountancyAge.com’s sister publication Computing that EDS is not guaranteed to retain the lucrative contract but that competitors will need to prove that they are capable.

‘Other organisations have a very good chance of being able to win this competition but it will require the commitment of an ‘A’ team,’ he said. ‘It is a very real competition and the reason is that the world is changing, our business is changing and IT is changing.

‘I think the current contract has been a success but it doesn’t mean that is all we will do in the future.’

The 10-year contract with EDS, covering 73,000 desktops and 200 systems, runs until 2004, but the complexity means that planning has to start now, added Yard.

He ruled out the possibility of taking the Revenue systems back in-house. ‘It will be difficult and we aren’t looking to take it back in-house. We believe that we get better value from working with the industry and leaving it outside,’ he explained.

Another contract with Accenture for the National Insurance database also expires in 2004 and the Revenue will be looking to consolidate the two, according to Yard. ‘We are looking at a single deal covering both aspects,’ he said.

Links

Experts condemn Revenue outsourcing

Inland Revenue broke EU rules

NIRS 2 report due this winter

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