IRS Deep-Sixes Outsourcing Plans As Tax Season Approaches - InformationWeek
IoT
IoT
Software // Enterprise Applications
News
11/30/2006
11:29 AM
50%
50%
RELATED EVENTS
4 Keys to Improving Security Threat Detection
Dec 15, 2016
In this webinar, Ixia will show how to combine the four keys to improving security threat detectio ...Read More>>

IRS Deep-Sixes Outsourcing Plans As Tax Season Approaches

The halting of the plan is unrelated to the fact that the IRS has a poor track record when it comes to managing large outsourcing projects, a spokesman insists.

A spokesman for the Internal Revenue Service said Thursday that the tax agency is shelving a plan that would have seen it outsource the management and maintenance of more than 100,000 desktop computers at facilities across the nation to a private contractor.

"We realized that this would be a huge and complex undertaking, and we've decided to pull back," says the spokesman, adding that the IRS had been in preliminary talks with technology vendors about the plan but that no deals had been signed.

The halting of the plan is unrelated to the fact that the IRS has a poor track record when it comes to managing large outsourcing projects, the spokesman insists. In the most recent foul up, the agency issued more than $318 million in refunds on phony returns last year because of a botched software project, a government report released earlier this year concluded. The project had been outsourced to Computer Sciences Corp.

The IRS is also delaying the implementation of a separate plan to outsource the handling of paper tax returns to a contractor. Under a revised plan, the tax agency will reduce from seven to two the number of processing centers that will be handed off to IAP Worldwide Services by December. IAP is now scheduled to take control of the remaining centers in June.

The calendar played a big part in the IRS's decision to slow the implementation. "The January to April tax season is prime time for us, and we didn't want any interruptions," the spokesman says. The IRS's deal with IAP is worth $103 million over five years. The agency expects the plan to result in total savings of $25 million to $30 million, the spokesman says.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
Top IT Trends to Watch in Financial Services
IT pros at banks, investment houses, insurance companies, and other financial services organizations are focused on a range of issues, from peer-to-peer lending to cybersecurity to performance, agility, and compliance. It all matters.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 6, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll