HMRC plans predictive analytics system to curb insolvency risks
Organisation looking at collaborative approach to build a system that can be supported by its existing IT infrastructure as part of proposed contract valued at up to £5m
HM Revenue and Customs (HMRC) is considering a tender to find a partner to help develop a predictive analytics solution from early next year that can identify and manage insolvency risks.
A prior information notice (PIN) released by the organisation is looking at appointing an organisation to work alongside HMRC's internal technical specialists under a proposed one year contract with an anticipated value of between £2m to £5m.
The solution is expected to include application software programming services, financial information systems, as well as data analysis and consultancy functions. The contract is intended to come into effect from January 3, and run throughout 2017.
Amidst a wider focus on curbing tax avoidance and evasion, while transforming tax and payment services offered to the public, the department is looking to bolster its existing skills and capabilities with external experience in order to build the insolvency risk system.
"The solution will integrate with and exploit HMRC's existing IT infrastructure and analytic capability," said the information notice. "The external partner must have highly relevant experience of modelling insolvency risk, for example from working on projects of a similar scale for other tax administrations, major retail banks, telecommunication or utility companies."
Any potential solution is expected to be built around HMRC's own IT, data and analytic capabilities, with a chosen supplier expected to co-locate within the department's own premises as part of a "knowledge transfer" approach.
It is hoped that the strategy will help ensure internal staff hold the required knowledge, skills and wider experience to maintain and oversee iterative development of HMRC's analytics capabilities going forward.
"A requirement will be for HMRC to own the intellectual property rights for the eventual analytics solution. HMRC is currently undergoing a major IT transformation," the notice added. "The analytics solution, therefore, will need to be sufficiently flexible for HMRC to adjust or rebuild it to retain its functionality after changes to HMRC's IT infrastructure."
Additional requirements outlined in the PIN require any solution developed as part of the agreement to be capable of integrating with the organisation's existing IT infrastructure.
A supplier event is expected to be held on June 23 as a means to finalise potential requirements of the contract.