§ Mr. MullinTo ask the Chancellor of the Exchequer what estimate he has of the savings to the Inland Revenue over 10 years of the contract between the Inland Revenue and EDS; when the contract was(a) awarded and (b) revised. [36702]
§ Mr. JackWhen the Inland Revenue signed a 10-year outsourcing contract with EDS in May 1994, the estimated value based on the work load identified in the invitation to tender was £1 billion, which represented a potential saving of £225 million over the in-house costs.
The Inland Revenue is in the process of updating the original estimates to take into account the actual changes to the work load identified in the first year of the contract and revising forecasts for the remaining life of the contract.
This work is not yet complete and therefore revised figures are not yet available.