Published on the 30/05/2014 | Written by Clare Coulson
Inland Revenue has taken the next step in its Business Transformation project announcing the release of its Request for Proposal to its two shortlisted multinational vendors for its core systems upgrade…
The massive project, which is allegedly costing $1.5 billion, is aimed at designing a modern system that reduces compliance costs, integrates automatically with New Zealand businesses’ IT systems and means people will need to engage with IR less frequently, more simply, and increasingly online.
The closed RFP was released to multinationals Accenture and Capgemini, who were shortlisted during the Inland Revenue’s Expression of Interest phase. Both have extensive international experience in delivering tax and technology programmes, and have been working with New Zealand companies during the process, according to Inland Revenue.
There have been significant industry concerns regarding the scope of the project, which is one of the largest public sector projects ever undertaken in New Zealand. When approached for comment, CEO of the IITP, Paul Matthews said the deep concerns regarding the size and scope of the core of this project. “All research and previous practice in New Zealand and around the world makes it clear that large and complex projects generally fail – the only way to succeed is to split a project into smaller sized components then focus on the interaction between components. Time will tell which approach is taken for this.”
Inland Revenue Media Advisor Sarah-Lee Ryan also confirmed to iStart that Ministers have approved the Inland Revenue’s Programme Business Case. She said that IR is taking a prudent approach to ensure it gets the very best supplier for this programme, and “will follow Government procurement processes and international leading practice”.
The IR has come under fire from industry bodies and vendors for effectively shutting out New Zealand companies with the scope of its project. Revenue Minister Todd McClay said: “It was always envisaged that the capability and capacity required to implement Business Transformation would come from both New Zealand and overseas.”
Matthews said the shortlist isn’t really a surprise given the structure of the Expression of Interest process.
“Talking more generally, New Zealand’s industry has huge capability, however despite this capability increasing consistently over the last 50 years, we’re still seeing a situation where Kiwi companies have to succeed at scale overseas before they’ll get a look-in at home,” he opined.
Minister McClay said he had been advised that both the remaining vendors have committed to work closely with the New Zealand ICT sector to design and build significant parts of the process. “It is my expectation that at least one-third of the total services spend on Business Transformation will go to New Zealand businesses.”
Matthews said it’s likely that some considerable specialist knowledge would be required at the top level and it will be very interesting to see where the general resourcing will occur – whether the bulk of work will be kept in New Zealand and completed by taxpaying Kiwis, or sent off overseas.
Minister McClay did highlight two recent instances where New Zealand companies have be successful in bidding for work with the IR including Assurity Consulting which has recently been awarded a $30 million contract as the IR’s preferred business as usual testing provider and two young Wellingtonians who have been chosen to work alongside Inland Revenue to develop a new mobile app.
