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The two companies' contracts to provide services to the Inland Revenue will expire Summer, 2004.
EDS currently provides the systems that manage the Department's tax computer systems. Accenture supports the Revenue's National Insurance Contributions (NICS) systems through NIRS (following the transfer of responsibility for NICS from the DSS in 1999).
The new contracts are estimated to be worth around £300- £400 million per year.
Nick Montagu, Chairman of the Inland Revenue, said: "The Inland Revenue faces changes on an unparalleled scale and on all fronts- policy, compliance, customer services and expectations, the integration of new businesses and the use of new technologies to deliver our services.
"Our challenge, and that of our partners, is to find ways to transform our business to meet these demanding and exciting times. Our IT partner, beyond 2004, will play a major part in changing our business and we are therefore looking for the right partner with the right skills to deliver our aspirations. This competition will be vital to the future success of the Inland Revenue."
The Inland Revenue will place a Procurement Information Notice in the Official Journal of the European Community announcing the competition to IT and related services partners.
End of an era?
In July, Shout99 reported the Inland Revenue's National Insurance computer system, NIRS, was beset with problems and millions of pounds over-budget, after a parliamentary question exposed the extent of the problem.
Dawn Primarolo, Paymaster General, was forced to admit to the House that: "Additional operational costs up to March 2001 [for NIRS2] were £40.4 million."
She added: "It is not possible accurately to estimate the future costs until the backlog of cases has been cleared."
NIRS2 left 120,000 pensioners underpaid by £41 million in 2000 and drew attention to the skills shortage in the IT sector as suppliers EDS battled to find staff to develop and maintain the system.
Jeff Rooker, former Pensions Minister at the Revenue, publicly denounced the Government's IT system as 'rubbish.'
Dave McKenna, a Revenue spokesman, told Shout99 at the time: "NIRS2 is, and has been stable and functioning well, supporting Government Pensions and NI legislation for well over a year. We have a strong relationship with our partners on NIRS2, Accenture. The central premise that NIRS2 is not working is incorrect."
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Richard Powell, Shout99
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