Consultancy asked to justify high staff costs...
Published: 4 December 2001 08:21 GMT
Consultancy Accenture has been forced to answer questions from the government over accusations that it effectively held the Inland Revenue to ransom over its contract to run the National Insurance computer.
Accenture was accused of overcharging for the service because it knew the Inland Revenue could not afford to switch supplier, as such a move would incur a cost of around £44m.
As such Accenture allegedly operated an overpriced service within this £44m 'safety zone' and was yesterday called before the Commons public accounts committee to answer questions about staff costs.
In its defence, Accenture said the high staff costs are a result of the company only employing the best staff and paying the price for doing so.
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