Capgemini wins £107M HMRC extension – no competition needed
(2025/07/31)
- Reference: 1753953310
- News link: https://www.theregister.co.uk/2025/07/31/capgemini_hmrc_extension/
- Source link:
UK tax collector His Majesty's Revenue and Customs (HMRC) has awarded Capgemini a £107 million support and services deal, without competition, under a relationship that started more than twenty years ago.
The French outsourcer is being rehired to provide business application support and maintenance services for a set of "business-critical HMRC applications."
The current deal was agreed in 2022, and is designed to "provide decommissioning and applications modernisation services for applications in scope," an official notice said this week.
[1]
The modification will continue to support that process "to meet initial contract objective ensuring that key business applications and services are modernized and ready for future market engagement," the [2]notice said .
[3]
[4]
The modified contract is scheduled to end in 2027, bringing the total value under the 2022 deal to £321.8 million, all without outside competition. However, the total amount awarded to Capgemini since the Aspire project was first created in 2004 is much more.
The UK's Inland Revenue, now part of HMRC, first signed the ten-year Aspire contract with Capgemini – a joint deal with Fujitsu and BT – which cost the public purse £10 billion between 2006 and 2016. Aspire was the largest UK government contract, delivering technology services and projects. It replaced a previous contract with [5]EDS and Accenture .
[6]
In 2016, HMRC [7]set out to replace the Aspire IT contract through a procurement that was expected to interest smaller and medium-sized companies , as well as larger providers, in a transition said to be fraught with risk. It also extended the contract by a year.
In 2016, the National Audit Office said the Aspire contract had provided "stable but expensive IT systems" and contributed to HMRC's technology becoming out of date.
[8]Fujitsu sorry for Post Office horror – but still cashing big UK govt checks
[9]UK tech minister negotiated nothing with Google. He may get even less than that
[10]UK MoD pauses £92M Oracle Fusion contract amid project governance review
[11]UK govt promises digital reform in spending review. We've heard that before
However, in 2019, Capgemini [12]said it had won work to provide applications management services until June 2022.
"This extension builds on a successful 15-year partnership between the two organisations, which has been instrumental in the delivery of services that underpin the collection of UK tax revenues," the firm said at the time.
Fast forward to 2022 when creating the current deal, HMRC said only Capgemini could support and decommission the applications within its remit "because of their 18 years of supporting those services."
[13]
In April 2022, HMRC said all contracts awarded under the Aspire contract would end by June 30, 2022.
Earlier this year, joint work between The Register and public sector contracting experts Tussell [14]showed that since 2020 , HMRC had contracted for £3.8 billion in spending with the tech suppliers involved in the Aspire deal, £591 million of which was awarded without competition.
In the last few months, tech minister Peter Kyle has signed non-contractual agreements with [15]Google and [16]OpenAI in an effort to improve productivity in public service, without saying how they would help get out of longstanding contractual relationships and move off legacy systems. ®
Get our [17]Tech Resources
[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aIs-vYc6XxRy2hSBY0tMQQAAAMw&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[2] https://www.find-tender.service.gov.uk/Notice/043503-2025
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aIs-vYc6XxRy2hSBY0tMQQAAAMw&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aIs-vYc6XxRy2hSBY0tMQQAAAMw&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2003/12/11/inland_revenue_sacks_eds/
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aIs-vYc6XxRy2hSBY0tMQQAAAMw&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2016/07/27/mps_reiterate_risks_of_mega_10bn_aspire_contract_overhaul/
[8] https://www.theregister.com/2025/07/17/fujitsu_govt_contracts/
[9] https://www.theregister.com/2025/07/16/uk_gov_google_comment/
[10] https://www.theregister.com/2025/06/17/mod_oracle_fusion_refresh/
[11] https://www.theregister.com/2025/06/11/uk_tech_reform_spending_review/
[12] https://www.capgemini.com/gb-en/news/press-releases/capgemini-signs-a-contract-extension-with-hmrc/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aIs-vYc6XxRy2hSBY0tMQQAAAMw&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[14] https://www.theregister.com/2025/01/09/hmrc_aspire_supplier_deals/
[15] https://www.theregister.com/2025/07/09/google_cloud_civil_service/
[16] https://www.theregister.com/2025/07/22/openai_to_help_fix_nhs/
[17] https://whitepapers.theregister.com/
The French outsourcer is being rehired to provide business application support and maintenance services for a set of "business-critical HMRC applications."
The current deal was agreed in 2022, and is designed to "provide decommissioning and applications modernisation services for applications in scope," an official notice said this week.
[1]
The modification will continue to support that process "to meet initial contract objective ensuring that key business applications and services are modernized and ready for future market engagement," the [2]notice said .
[3]
[4]
The modified contract is scheduled to end in 2027, bringing the total value under the 2022 deal to £321.8 million, all without outside competition. However, the total amount awarded to Capgemini since the Aspire project was first created in 2004 is much more.
The UK's Inland Revenue, now part of HMRC, first signed the ten-year Aspire contract with Capgemini – a joint deal with Fujitsu and BT – which cost the public purse £10 billion between 2006 and 2016. Aspire was the largest UK government contract, delivering technology services and projects. It replaced a previous contract with [5]EDS and Accenture .
[6]
In 2016, HMRC [7]set out to replace the Aspire IT contract through a procurement that was expected to interest smaller and medium-sized companies , as well as larger providers, in a transition said to be fraught with risk. It also extended the contract by a year.
In 2016, the National Audit Office said the Aspire contract had provided "stable but expensive IT systems" and contributed to HMRC's technology becoming out of date.
[8]Fujitsu sorry for Post Office horror – but still cashing big UK govt checks
[9]UK tech minister negotiated nothing with Google. He may get even less than that
[10]UK MoD pauses £92M Oracle Fusion contract amid project governance review
[11]UK govt promises digital reform in spending review. We've heard that before
However, in 2019, Capgemini [12]said it had won work to provide applications management services until June 2022.
"This extension builds on a successful 15-year partnership between the two organisations, which has been instrumental in the delivery of services that underpin the collection of UK tax revenues," the firm said at the time.
Fast forward to 2022 when creating the current deal, HMRC said only Capgemini could support and decommission the applications within its remit "because of their 18 years of supporting those services."
[13]
In April 2022, HMRC said all contracts awarded under the Aspire contract would end by June 30, 2022.
Earlier this year, joint work between The Register and public sector contracting experts Tussell [14]showed that since 2020 , HMRC had contracted for £3.8 billion in spending with the tech suppliers involved in the Aspire deal, £591 million of which was awarded without competition.
In the last few months, tech minister Peter Kyle has signed non-contractual agreements with [15]Google and [16]OpenAI in an effort to improve productivity in public service, without saying how they would help get out of longstanding contractual relationships and move off legacy systems. ®
Get our [17]Tech Resources
[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2aIs-vYc6XxRy2hSBY0tMQQAAAMw&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[2] https://www.find-tender.service.gov.uk/Notice/043503-2025
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aIs-vYc6XxRy2hSBY0tMQQAAAMw&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aIs-vYc6XxRy2hSBY0tMQQAAAMw&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2003/12/11/inland_revenue_sacks_eds/
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44aIs-vYc6XxRy2hSBY0tMQQAAAMw&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[7] https://www.theregister.com/2016/07/27/mps_reiterate_risks_of_mega_10bn_aspire_contract_overhaul/
[8] https://www.theregister.com/2025/07/17/fujitsu_govt_contracts/
[9] https://www.theregister.com/2025/07/16/uk_gov_google_comment/
[10] https://www.theregister.com/2025/06/17/mod_oracle_fusion_refresh/
[11] https://www.theregister.com/2025/06/11/uk_tech_reform_spending_review/
[12] https://www.capgemini.com/gb-en/news/press-releases/capgemini-signs-a-contract-extension-with-hmrc/
[13] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/publicsector&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33aIs-vYc6XxRy2hSBY0tMQQAAAMw&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[14] https://www.theregister.com/2025/01/09/hmrc_aspire_supplier_deals/
[15] https://www.theregister.com/2025/07/09/google_cloud_civil_service/
[16] https://www.theregister.com/2025/07/22/openai_to_help_fix_nhs/
[17] https://whitepapers.theregister.com/
Two tier
elsergiovolador
If a small British business served one client for 18 years, HMRC would call it suspicious. “Too cosy,” they’d mutter. “Must be gaming the system.” But when Capgemini does it, it’s “instrumental in delivering vital public services.”
Small businesses are told to fight for crumbs through endless procurement hoops. But the big consultancies? They get handed blank cheques and described as “trusted partners.” They’re not vendors - they’re institutions now, beyond scrutiny, baked into the machinery of government failure.
And of course, the final farce: the public sector proudly announcing its bold new vision to “move away from legacy systems”… by signing more secretive deals with the exact same old suppliers, plus a few handshakes with Google and OpenAI to add some Silicon Valley fairy dust.
Welcome to Britain: where small firms get compliance checks, and monopolists get multi-year renewals.
All your application are belong to us
HMRC have taken many of the staff outsourced under Aspire and the subsequent contracts back in-house ( or as near as makes no difference), but have left enough in the hands of CapGemini to still be over a barrel.
Fujitsu still have ownership of the VME platform on which some of their systems still run, which will remain the case until they are replaced or migrated. How long until they wriggle free of CapGemini's grasp?