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Premios > Insights  > HMRC Caught Speeding?

HMRC Caught Speeding?

Steve Kitching, UK Managing Director of PREMIOS Group

In what has no doubt sparked a furious debate both in Westminster and in the broader consulting landscape, an altogether underwhelming recent revelation from TechMarketView positions HMRC as being caught red-handed on consultancy spend with a whopping 9000% increase.

Without undermining the harshness of this reality with discussion around how those figures were calculated, a more telling and valuable tale emerges:

‘…in the first four months of this year, HMRC has paid £2.1m to consultants, compared to £2.2m in the whole of 2017.’

Clearly, even though HMRC may not be truly spending the whole 9000% more it is clearly growing external consulting spend at the same time as growing internal tech resourcing.

One can’t manage what one doesn’t measure. Evidently much of that spend will be on software delivery and at Premios we know from decades of experience that there is a better way of avoiding any, let alone such potentially immense, needless waste of money, let alone that most precious public purse.

Strong measurement encourages good behaviour by all involved. Without speed cameras there would be significantly less accountability on the roads. The same is true for consulting spend. There needs to be a clearer ‘check and balance’ roadmap impacting on behaviour.

‘But, rather than focusing on cost, Government needs to be more sophisticated in its measurements and look at the value being delivered by external consultants.’

Ultimately of course, retrospective measurement of spend offers no opportunities to recoup waste. Our experience means we know it is far better to validate estimates upfront and prevent waste down the line.

In the last 25 years Premios have helped numerous organisations significantly improve value for software development spend through measurement of delivered functional value from external consultants.

By being able to understand work for delivery, rather than merely guessing and working on gut feel, we’ve helped numerous organisations at the highest level know what’s going wrong and where any blockages ahead may be.

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