💰HMRC Paid Capgemini £4.2B Over 12 Years
HMRC's £4.2 billion Capgemini spend stirs controversy
TL;DR
HMRC has paid Capgemini over £4.2 billion since 2014, raising eyebrows. The true total may be higher due to missing data, and HMRC insists the contracts comply with UK procurement laws.
HMRC has paid Capgemini at least £4.2 billion across 15,726 transactions from 2014 to July 2026. This massive spend has sparked debate, with some questioning the lack of competition for certain contracts. HMRC's Technology Sourcing Programme (TSP) aims to open its £900 million annual IT budget to more suppliers, but Capgemini has secured several large contracts without competition. The TSP generated £824.6 million in savings through IT modernization. HMRC awarded Capgemini a £200 million contract in 2022 to migrate and decommission legacy data warehouses, and another £245.5 million in May 2024 to keep legacy systems running.
Key Points
HMRC paid Capgemini at least £4.2 billion across 15,726 transactions from 2014 to July 2026.
Capgemini won a £200 million, five-year contract in August 2022 to migrate HMRC's legacy data warehouses.
HMRC awarded Capgemini a £245.5 million deal in May 2024 to keep legacy systems running.
Capgemini signed a £51 million agreement in January 2022 to support tax systems developed under Aspire.
HMRC awarded Capgemini a £214 million deal in March 2022 to maintain legacy applications during modernization.
Why It Matters
HMRC's £4.2 billion spend on Capgemini raises questions about procurement practices and competition. The TSP aims to open HMRC's £900 million annual IT budget to more suppliers, but Capgemini has secured several large contracts without competition. This could impact how other government agencies approach IT procurement and the role of large consulting firms in public sector IT.
Comments
Be the first to comment
Enjoyed this article?
Get it daily. 7am. Free. Reads in 5 minutes.
Join 3,564 builders reading daily.