As reported last week in Silicon.com “Taxman lifts lid on deal that’s saving HMRC £1bn,” the HMRC are planning to find more than £1bn worth of savings out of one of the UK’s largest outsourcing contracts. The contract is worth a significant £750m per year and provides the department with nearly all of its IT services and supplies comprising: 8,000 servers, 80,000 desktop PCs and 7,500 laptops. Their aim is to reduce costs and to simplify and streamline its core systems by reducing the number of computer systems used within the department from more than 600 to just 13.
But do the HMRC give enough consideration to their Outsource/Supplier relationship? As it turns out the answer is yes, they do. Mark Hall, who is overseeing the project, recognises that the HMRC and their suppliers must “transcend the normal client-vendor dynamic,” and that collaboration, “has to be about joint outcomes.” Furthermore that partnership “has to be about teams that are aligned and it has to be about both organisations taking the share of risk and reward.”
This thinking echoes the Intellect paper being launched shortly, “A new Decade, A new Outsourcing Challenge.” Individuals from over 40 organisations discussed and analysed the future relationships between outsource buyers and suppliers; they concludes that customers and suppliers need to have a shared and transparent understanding of their risk and reward issues and who is best placed to deal with them. A shift towards faster, less adversarial bidding processes that provides a forum for shared understanding through a genuine competitive dialogue are long overdue. The Outcome Based Agreements group will also be holding a roundtable shortly to assess the practicalities of OBA contracts in the development of a new way of working, underwritten by new procurement approaches focused on the delivery of business outcomes.
Please let us know if you’d like to attend either of these two events, full details are linked below.
Upcoming events:
A new Decade, A new Outsourcing Challenge - paper launch and industry discussion 12/10/10
Outcome Based Agreements: Achieving the outcome – roundtable discussion on the legal contracting implications of affectively implementing OBAs 13/10/10
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