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IRD transformation project needs to be open to NZ firms

8 October 2013

IRD transformation project needs to be open to NZ firms

The Inland Revenue Department is needlessly shutting out New Zealand contractors from a slice of the biggest ICT contract in New Zealand’s history, Green Party ICT spokesperson Gareth Hughes said today.

The Inland Revenue Department (IRD) has invited expressions of interest from companies able to assist with its "business transformation" programme. This transformation programme has been budgeted at costing the New Zealand taxpayer up to $1.5 billion dollars A clause requires bidders to have "led or managed the overall design and implementation" of a $100 million-plus major transformation programme.

“The contract for ‘business transformation’ effectively means no New Zealand firm stands a chance of succeeding,” said Mr Hughes.

“In a country the size of New Zealand, there would be very few, if any, New Zealand ICT companies that meet this requirement.

“That does not mean that New Zealand ICT companies and their workers wouldn’t be willing or able to do this task.

“Over the last few years, the IRD has been cutting back on staff including ICT workers while at the same time looking for overseas consultants to transform the organisation.

“The tens of millions dollars spent on overseas consultants Capgemini providing the initial scoping work for the IRD’s business transformation programme will be dwarfed when we spend a billion dollars on an overseas consultant for this project.

“New Zealand firms deserve a fair go and the opportunity to put themselves forward to work on projects such as this,” said Mr Hughes.

“The IRD needs to learn from the Ministry of Education’s Novopay disaster that going with overseas firms is not always the best way to achieve either ICT objectives or value for money.”

ENDS

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