Menu
Examining the top-dollar contractors working on IRD's $1.8 billion transformation

Examining the top-dollar contractors working on IRD's $1.8 billion transformation

Accenture raked in $33 million while eight other firms cracked the $1 million mark in the ten months to the end of April.

A who's who of ICT firms and consultancies are servicing the Inland Revenue's hunger for ICT skills, services and goods.

A who's who of ICT firms and consultancies are servicing the Inland Revenue's hunger for ICT skills, services and goods.

Credit: Dreamstime

The Inland Revenue Department spent over $102 million on contractors and consultants for its $1.8 billion transformation programme in the 10 months ended 30 April, disclosures to Parliament reveal.

Accenture was the largest contractor on the project during the period, receiving $33 million and shading Fast Enterprises, the US company that develops the software that will underpin IRD’s replacement of its 30-year-old FIRST mainframe system.

Fast received $29.2 million during the year while Deloitte was the third largest contractor by revenue receiving $10.3 million.

Other firms working on the project to receive more than $1 million were: Assurity Consulting - $6.28 million; Beyond Recruitment - $3.17 million; Absolute IT - $2.95 million; Absolute Payroll Wellington - $1.84 million; Team Asparona - $1.37 million, and; Unisys - $1.07 million.

Spending on Inland Revenue's transformation programme is expected to peak in the current 2018 financial year.
Spending on Inland Revenue's transformation programme is expected to peak in the current 2018 financial year.

IRD said it expects to spend more on contractors and consultants in the 2018 financial year.

“Services provided by external consultant and contractors complement internal resources and are primarily specialist in nature,” the department told Parliament. “The Business Transformation programme is high-risk, and the requirements for Stage 2 are exponentially greater and more complex than for Stage 1.

“While the Business Transformation programme is still finalising detailed resource planning for 2017/18, more consultants and contractors are expected to be required than in 2016/17, given the requirements for co-existence, integration, testing, stakeholder engagement and change management.”

Detailed by IRD CTO Gary Baird via a Reseller News Podcast, the department is disrupting its own business to deliver connections to its wider ecosystem and replace creaking 30-year-old mainframe systems.

Furthermore, IRD spent a further $20.8 million on consultants working outside of the transformation programme, many not in ICT.

However, the ICT contractors to receive more than $1 million in this category were: Absolute IT - $2.84 million; Deloitte - $2.61 million; Assurity Consulting - $2.25 million; Datacom - $1.33 million, and; Zephyr Consulting - $1.09 million.

Out of its total, Deloitte received $1.96 million for its work on the J2FM project to replace IRD’s end-of-life middleware.

“For the J2FM project, we’re adopting an iterative continuous development approach that is relatively new to Inland Revenue," the department explained online.

“Historically, large scale projects have only used traditional waterfall methods involving large manual testing efforts in integrated test environments in the latter phase of the project. Many defects are therefore identified at a later stage, resulting in greater risk and more costly fix and retest efforts.”

Asparona is also working on the J2FM project.

In a related disclosure, IRD revealed contracts awarded in the ten months to 30 April - some of these may include the payments reported above but others clearly do not.

Accenture topped that table with $45 million followed by Vodafone with $15.6 million, meanwhile Unisys won $13.1 million of deals while Datacom clocked up $5.8 million.

Among the other suppliers mentioned, Revera recorded $2.48 million and Spark Digital $1.22 million.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags transformationaccentureDatacomDeloitteconsultantscontractorsAbsolute ITconsultancyInland RevenueFast Enterprises unisys

Featured

Slideshows

Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News Innovation Awards 2018: meet the top performing partners

Reseller News honoured the industry’s finest on a standout evening for the New Zealand channel, recognising the achievements of established partners, emerging players and innovative start-ups, in front of over 460 technology leaders in Auckland.

Reseller News Innovation Awards 2018: meet the top performing partners
Champagne Reception kicks off Reseller News Innovation Awards 2018

Champagne Reception kicks off Reseller News Innovation Awards 2018

More than 460 channel leaders came together to toast the top performers of the New Zealand industry, during the opening Champagne Reception at the Reseller News Innovation Awards 2018 - in association with Techbuyer.

Champagne Reception kicks off Reseller News Innovation Awards 2018
Chasing innovation: how Kiwi partners can create a new customer agenda

Chasing innovation: how Kiwi partners can create a new customer agenda

This exclusive Reseller News Roundtable - in association with Rhipe and Microsoft - detailed a blueprint for customer success, outlining the new role of the modern-day partner and wider network in New Zealand.

Chasing innovation: how Kiwi partners can create a new customer agenda
Show Comments