PRESS RELEASE: HMRC and Capgemini Strengthen Their Partnership with Revised Aspire IT Agreement

Capgemini (Paris:CAP):

Following five years of successful service and programme delivery, HM Revenue & Customs (HMRC) - the UK's tax authority - has committed to channel all core external IT spend through the Aspire contract, HMRC's contract with Capgemini - via its subsidiary Capgemini UK plc - and major sub-contractors Fujitsu and Accenture, for the provision of IT services, which runs until 2017. In return, the revised agreement will enable HMRC to reduce its IT running costs.

A transformation program has been established to implement standardized systems with common industry components, and investment in modern, more flexible, technologies to better meet the needs of HMRC's integrated organisation and drive cost savings, which will be realised from financial year 2011/12. Under the revised Aspire agreement, Capgemini, Fujitsu and Accenture have committed to save GBP110 million a year for HMRC, in addition to the GBP70 million per annum savings committed in 2007.

The service providers under the Aspire agreement have been granted exclusivity on all project delivery for HMRC until April 2013, with a minimum revenue commitment on project work thereafter in addition to exclusivity on data centre services delivered through the subcontract with Fujitsu until 2015. The existing desktop service has also been extended, whereby Capgemini will act as HMRC's procurement agent in respect of office IT equipment and consumables, which will enable Capgemini to deliver an improved end user experience for HMRC employees.

Lesley Strathie, Chief Executive, Permanent Secretary for HMRC said: "HMRC and Capgemini have worked together to achieve outstanding savings for the Department. This is just one of the ways HMRC will be reducing operating costs and it signals the intent to bring IT costs down as announced in the 2009 Budget."

Nigel Martin, CEO, Capgemini Aspire said: "The latest change to the Aspire contract has been made possible by collaboration both with HMRC and Capgemini's Aspire partners particularly Fujitsu, our core infrastructure partner, and Accenture. Together we're helping HMRC respond to a challenging environment and our flexible contract is continuing to set the standard for all outsourcing arrangements 5 years after it was first signed. The new agreement would not have been possible without our track record of reliable service and up to 200 projects delivered on time and within budget for HMRC each and every year."

Notes to editors:

1. HM Revenue & Customs is responsible for the collection of UK taxes, ensuring the correct amount of tax is paid at the right time, as well as administering the payment of benefits and credits to customers who need them

2. Aspire is HMRC's contract with Capgemini for the provision of IT services. The contract is primed by Capgemini and includes core subcontractors Fujitsu, Accenture and BT as well as Ecosystem partners

3. The latest development of the Aspire agreement follows a series of amendments to the original contract with the Inland Revenue which started in 2004. Aspire was expanded in 2006 to include HM Customs & Excise, and in late 2007 it was extended by three years, to 2017 and included some new pricing arrangements.