Fujitsu has its sights set on renewing a significant contract with HMRC, estimated to be worth over £200 million. This comes even as reports suggest that HMRC might replace Fujitsu due to its troubled history in managing the contract. During a recent internal meeting, company officials assured staff that claims of being replaced were unfounded. They mentioned that HMRC had just extended the existing Trader Support Services (TSS) contract with Fujitsu for £67 million, valid for another year. This TSS service helps businesses transport goods between Great Britain and Northern Ireland.
Dave Riley, head of Fujitsu’s UK public sector, told employees they plan to bid aggressively for the TSS contract, stressing their advantage as the current provider. Despite public dissent over the government’s continued partnership with Fujitsu following its part in the Post Office scandal, the company remains in the running. In September 2024, HMRC announced it would seek bids for the next phase of TSS, starting in 2026. Riley confirmed that Fujitsu had been invited to participate in this competitive tender process.
Originally signed in 2020, the TSS contract was worth £241 million. After a dramatic ITV series highlighting the scandal in January 2024, Fujitsu had even pledged not to chase new government contracts, attempting to make amends. Yet, they still secured numerous contracts worth hundreds of millions of taxpayer funds.
Riley addressed Fujitsu employees regarding HMRC’s intentions, clarifying that while a competitive tender is planned, the company is indeed invited to bid. He highlighted how their status as the incumbent supplier provides a unique outlook for upcoming tenders.
In addition, HMRC is reportedly close to finalizing another major deal with Fujitsu known as North Star, which encompasses hardware and cloud services without going through a competitive tender process. When asked about this arrangement, HMRC stated they follow procurement rules and publish contract details upon approval. Reports indicate that HMRC spent over £240 million with Fujitsu in 2024 alone, with projections suggesting this could rise significantly in 2025 due to potential contract renewals.
On the labor front, a significant number of Fujitsu staff involved in the HMRC projects recently went on strike over pay disputes. Those employed directly by HMRC received larger pay increases for similar work, leading to grievances among Fujitsu employees. Last January, Fujitsu’s European head, Paul Patterson, indicated the company would hold off on bidding for government contracts pending an inquiry into the Post Office scandal.
However, that pause did not seem to apply to existing clients, as leaked communications indicated Fujitsu was still eyeing about £1.3 billion worth of UK government contracts. Further documents suggested that employees were given guidance on how to navigate around Fujitsu’s own restrictions.