Inland Revenue has released its latest report on major contracts, revealing costs of its multi-year transformation fell dramatically amid more staff lay-offs.
Long-term transformation testing and quality assurance provider Assurity Consulting leads the table for the 2021 financial year with $20.6 million of contracts, little changed from 2020. It is followed by Spark with $14.9 million and Oracle with $12.1 million.
The table looks to be settling down to reflect business as usual rather than transformational spending. IRD's new core tax software provider, Fast Enterprises, did not even make the list after leading it last year with $67.5 million in contracts.
Legacy datacentre provider Unisys, third on the table last year with $32.5 million in contracts, also disappeared from the table. As reported earlier this week, Unisys did win a ten-year extension to its long term relationship with New Zealand's transport agency, Waka Kotahi.
Accenture NZ's major contract value (contracts over $1 million) during the year fell from $32.6 million, the second highest, to $3.5 million.
"The level of contract values reported for 2020/21 when compared with previous years, reflect a significant reduction as a result of the business transformation programme nearing completion," IRD reported.
However, there is a silver lining for the new incumbents.
"It is likely there will be an increase in the contracts and contract values reported for 2021/22 reflecting the transition from the programme to a business-as-usual steady state as those suppliers who have implemented systems during the programme are contracted to support and maintain those systems," IRD said.
The transformation business case promised big savings in the cost of tax administration and lay-offs did ramp up in 2021. A total of 137 people were made redundant in during the year, at a total cost of $13 million compared with 109 in 2020. costing $10 million.
Assurity Consulting this month promoted people experience manager Katie Ham, who joined the business in 2018, as its new general manager of the company’s Auckland business. Ham succeeded Steve Mitchell, who was recently promoted to the role of CEO.
Ham had successfully improved Assurity's employee engagement and satisfaction year-on-year and was highly regarded across the business, Assurity said.
"We are confident that with Katie’s experience, talent, and drive, she will successfully steer the Auckland team, our business growth and further strengthen the company’s brand in the Auckland market."
"We will continue to delight our customers and through continued innovation, find new pathways to acquire new customers, develop new revenue streams, build our brand, attract and retain talent and be regarded as a progressive and desirable place to work," Ham said.
Before joining Assurity in 2018, Ham was the customer service centres manager at Auckland Transport and the business support manager at PwC in London.