Progress in carrying out the initial reform programme

4.5  The reforms required HMRC and Aspire suppliers to agree significant changes to their commercial relationships, which has been difficult. Overall, HMRC made limited progress up to the start of 2014, in carrying out the changes sought in the memorandum.

•  HMRC competed only 14 contracts outside Aspire with an annualised value of £22 million, or 3 per cent of Aspire's cost.

•  HMRC did not agree a direct contract with Capgemini's key subcontractors, Fujitsu and Accenture. The exclusivity granted to Fujitsu in the 2009 contract renegotiation remains in place.

•  HMRC and Capgemini created a unit to integrate services, known as a System and Service Integrator or SSI. This unit was separate to Capgemini's other functions. It helped the Aspire contract to resemble the government's preferred technology supply model.

•  HMRC has started to define some of the changes and communicate them to staff. However, HMRC had made little progress in defining business needs or commercial arrangements, for when the contract ends.

•  HMRC has started to broaden its technical and commercial capabilities and adapt to new and faster ways of working.