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Tax Man Saves Just £500,000 From A Target Of £285M As It Project Stalls

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http://www.telegraph.co.uk/finance/economics/11746820/Tax-man-saves-just-500000-from-a-target-of-285m-as-IT-project-stalls.html

A private sector project to crack down on tax-credit fraud and error has saved the public purse just £500,000 in the past year, compared to a projected saving of £285m, marring an overall improvement in HM Revenue & Customs’ tax-collecting capability.

HMRC signed a three-year contract with Synnex-Concentrix UK in May 2014 to weed out incorrect working tax credits, which last year totalled £1.26bn in estimated over-payments and £180m in under-payments.

However, a three-month delay to the new IT platform and a “lower than expected number of interventions completed by the supplier” meant that in the last financial year, the project saved the Revenue £0.5m, instead of the forecasted £285m, and a target of £1bn savings over the life of the contract “is not achievable”, the National Audit Office said on Friday.

You can't beat the private sector for delivering targets with govt money, imagine the mess if this has been an in house job. Zero profits and a complete feck up. Instead the private sector delivers a 0.175% of the target given. Bounesses all round.

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http://www.telegraph.co.uk/finance/economics/11746820/Tax-man-saves-just-500000-from-a-target-of-285m-as-IT-project-stalls.html

You can't beat the private sector for delivering targets with govt money, imagine the mess if this has been an in house job. Zero profits and a complete feck up. Instead the private sector delivers a 0.175% of the target given. Bounesses all round.

Yet all the comments below the article are slagging off the public sector and saying this service should be privatised instead....errr.

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The problem they always face is that any half competent IT outfit would be doing something better than bidding for public sector contracts.

If they did a great job there is never going to be a second or third customer, so theres a strong incentive to just deliver the absolute minimum that will avoid them being in breach of the contract.

Thus mediocrity is baked in right from the start.

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The problem with this, as with so many large contracts, is that the firm that missinterprets the problems the most will get the contract by virtue of being the cheapest. They will then realise they have royally f####d up and will do the abslolute minimum required to avoid a breach of contract. Nowadays if you win a large contract the first thing you should ask yourself is what did i miss?

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