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Did Netcompany Replace Fujitsu at HMRC? What the Records Show

HMRC’s records show both Fujitsu and Netcompany doing different work. They do not establish a wholesale replacement or a Netcompany takeover of CESA.
From TheFinanceBase Team4 min to read
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No public records cited here show that Netcompany replaced Fujitsu across HMRC. The records instead show HMRC continuing Fujitsu services for essential legacy systems while paying Netcompany for project contract mandays. They establish work for both suppliers, but not a wholesale handover or a Netcompany takeover of Fujitsu’s CESA hosting role.

What do the HMRC records actually show?

The clearest evidence points to different work, not a direct replacement. In February 2026 spending data, HMRC recorded payments to both Fujitsu Services Ltd and Netcompany UK Limited. Netcompany’s listed work was project contract mandays under the Change Delivery Group. Spending data confirms a paid supplier relationship, but it is not a contract award notice and does not identify a Fujitsu contract that Netcompany took over. HMRC spending data, February 2026.

Question Fujitsu Netcompany
Work established by the cited records Legacy services and CESA hosting; HMRC also extended seven Fujitsu contracts. Project contract mandays under the Change Delivery Group.
What the evidence says about status Government answers and procurement notices document extensions and a CESA hosting contract. February 2026 departmental spending records show payments, not a contract award taking over Fujitsu work.
Evidence of a wholesale handover Not established by the cited records.

The sources do not provide comparable service-quality or price data for the two suppliers. Nor do they show that Netcompany took over Fujitsu’s CESA or data-centre responsibilities.

Which Fujitsu services did HMRC extend?

In a written answer dated 17 July 2025, the government said HMRC had extended seven Fujitsu contracts during the preceding 12 months to ensure continuity of essential services. The named services were:

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  • Oracle COTS software
  • Crown Hosting Run
  • Data Services
  • Data Project Services
  • Endpoint Detection & Response and Vulnerability Managed Service
  • Pre-Production Environment Web Solutions
  • Trader Support Service

The government said six extensions were below the £20 million Cabinet Office spend-control threshold. The Trader Support Service extension was valued at £66.8 million and required Cabinet Office spend control and ministerial approval. These are figures reported in the government’s 2025 answer, not a statement of current contract values. UK Parliament written answer, 17 July 2025.

What is the Fujitsu CESA contract?

CESA administers income-tax collection for Self-Assessment taxpayers. HMRC described it as critical national infrastructure and awarded Fujitsu a three-year contract for hosting and associated services using Fujitsu’s proprietary Modern VME Environment.

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HMRC’s 2025 notice states a three-year contract value of £61,250,958 excluding VAT. A possible six-month extension, subject to governance and approval, could raise the total to £71,500,000 excluding VAT. The notice also says HMRC had established a migration programme to move CESA to new arrangements before the contract expires. The potential extension is conditional, not evidence that it was exercised. HMRC CESA hosting notice, Find a Tender, 2025.

Why did HMRC extend services instead of switching suppliers immediately?

For certain applications in existing data centres, HMRC described a practical dependency on Fujitsu’s infrastructure. Its procurement notice said the applications were hosted or operated on Fujitsu infrastructure, with some services also using Fujitsu intellectual property, and that another contractor could not provide the interim services on that infrastructure before migration.

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“A change to a different contractor cannot be made for these services because the HMRC applications concerned are hosted and/or operated by the Contractor on the Contractor’s infrastructure in the Contractor’s data centres with connectivity provided by the Contractor.”

This is HMRC’s explanation in a procurement notice for the relevant interim services; it should not be generalized to every HMRC service or contract. The notice describes migration and replacement of certain applications from existing data centres, but does not establish the schedule for every application. HMRC data-centre procurement notice.

HMRC’s CESA notice separately characterizes the arrangement as a bridge while it migrates to new arrangements: “The Authority has a requirement for a bridging contract to ensure continuity of essential services as we migrate to new arrangements.” That is the stated purpose of the contract, not proof that migration has been completed. HMRC CESA hosting notice, Find a Tender, 2025.

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Does Fujitsu’s government bidding position explain Netcompany’s work?

Not on the evidence available here. In a March 2025 answer, the government described Fujitsu’s stated position as withdrawing from bids for new government customers until the Post Office Horizon Inquiry concludes, while continuing to bid for existing customers where there is an existing relationship or an agreed need for Fujitsu skills and capabilities. The same answer reported seven new Fujitsu contracts since July 2024, all with existing customers. This is background on Fujitsu’s stated bidding position; it does not explain why HMRC engaged Netcompany for project mandays. UK Parliament written answer, March 2025.

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What can readers conclude—and what remains unknown?

  • Established: HMRC’s records show both Fujitsu and Netcompany in its supplier mix, doing work described differently in the cited sources.
  • Established: The government reported seven Fujitsu contract extensions for continuity, and HMRC’s CESA notice documented a three-year Fujitsu hosting contract alongside a migration programme.
  • Not established: That Netcompany replaced Fujitsu across HMRC, took over CESA, or assumed the data-centre services covered by the migration notice.
  • Not established: The complete current inventory of HMRC supplier contracts, the migration schedule for every Fujitsu application, or a service-quality or price comparison between the suppliers.

Accordingly, “jilted” is a headline characterization, not a fact established by the cited government records. The supported account is narrower: HMRC continued some Fujitsu legacy services while paying Netcompany for project work.

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