Department Of Work And Pensions Chooses To Outsource

An outsourcing and consultancy group, Accenture

, has been recruited by the Department for Work and Pensions (DWP) to provide application services.

The seven-year, 350 million deal will see Accenture supply systems support as part of the introduction of the new Universal Credit, which is set to replace six of the main means-tested state benefits. Fellow third-party provider Atos has also been signed up to help with the implementation of the scheme.

Our work with the Department will help to further improve the service they deliver to reflect the changing needs of UK citizens, said Mark Lyons, Accentures UK and Ireland head of health and public service. This new contract builds on our long-standing relationship with the DWP and the successful delivery of similar projects with other public sector clients.

Accenture has previously worked alongside the DWP on the delivery of projects such as the Pensions Transformation Project and the Customer Information System. It is hoped that the firms application development and maintenance services will allow DWP to make significant savings.

Not only this, but a British subsidiary of Indian outsourcing giant, Tata Consultancy Services (TCS), has won a contract to oversee pension administration at insurance giant Friends Life.

Business process outsourcing provider Diligenta will assume responsibility for 3.2 million Friends Life pensions over a 15-year period starting next March. Friends Life is looking to put much of its IT and customer service functions out to tender, as it concentrates on the retirement income, corporate protection and benefits markets.

Our domain-centric, platform-based solutions enable us to help companies transform their businesses, TCS chief executive N. Chandrasekaran said in a statement. Our strong presence in the insurance segment, track record and the early investments in building products and platforms have contributed to this.

Mr. Chandrasekaran added that TCS does not expect to endure a loss-making period as the arrangement is implemented, insisting that the company anticipates revenues to flow in from the next quarter of the financial year.

The coalition has confirmed that Low Value Consignment Relief (LVCR), which exempts low-value exports from the Channel Islands from VAT, will end next April. The measure was originally introduced in 1983, but estimates suggest it now costs the UK taxpayer around 140million annually.

These reforms will ensure that UK companies, especially small and medium-sized enterprises, can compete on a level playing field with those larger companies with the resources to set up operations in the Channel Islands, said Exchequer secretary to the Treasury David Gauke. We are also protecting a significant amount of tax revenue.

While the government of Margaret Thatcher believed LVCR would provide an overall saving by eliminating the administrative costs of imposing VAT on cheap imports, the rapid growth in online retail has resulted in a major VAT loss to the Treasury as well as putting mainland businesses under pressure.

by: Tim Bisley

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