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HMRC have agreed a restructuring of their IT outsourcing contract in an effort to reduce IT running costs by some ten per cent by 2011.

In announcing the agreement, Deepak Singh HMRC Chief Information Officer said:

"I am delighted that we have been able to secure such a positive outcome that further strengthens our commitment to working with Aspire over the coming years. The IT outsourcing relationship between HMRC and Aspire has gone from strength to strength over the past three years as we have seen significant improvements in service quality and delivery capability. The restructuring of the Aspire contract balances the need for HMRC to meet its commitments to cost reductions under the 2007 Comprehensive Spending Review without compromising our joint drive to become a world class IT function".

The contract is being extended by a further three years to 2017.

Aspire is HMRC's contract with Capgemini and a number of other 'ecosystem' suppliers for the provision of IT services. The contract was originally signed in 2003/2004 and replaced the contracts IR had with EDS and Accenture for IT services and National Insurance Recording System (NIRS2) respectively. Following the merger of Inland Revenue and HM Customs & Excise in 2005, the latter's IT services contract with Fujitsu was incorporated within Aspire in April 2006. The existing contract term was for 10 years and due to end in June 2014. The contract has been extended by three years to June 2017.

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HMRC agree contract restructure