Branch2 Intelligence
HMRC claws back £1m cutting ties with outside tech suppliers
Key takeaway
HMRC cuts £1m/year by ending decades-old outsourcing model with outside tech suppliers.
- Step 1HMRC terminates outside tech supplier contracts, saving £1m/year.
- Step 2Displaced suppliers lose recurring revenue; competitive pressure on other government IT vendors intensifies.
- Step 3Whitehall efficiency drive accelerates insourcing, reducing total addressable market for external IT services firms.
- Step 4UK SMEs with high government revenue concentration face margin compression and need to pivot to private sector or diversify.
Source: City A.M.
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