When Her Majesty's Revenue & Customs switched a massive information technology outsourcing contract from EDS to Capgemini in 2004, the UK tax men appeared to leave their negotiating skills at home.
In a hard-hitting report in June, the Public Accounts Committeeaccused HMRC of letting the cost of a 10-year contract more than double, from £2.83bn in 2004 to £8.5bn in 2007. Capgemini's profits on the deal quadrupled from £300m to £1.1bn.
