The Inland Revenue has come under fire from the IT industry over the criteria in which government departments work on multi-million dollar contracts.

Accused of excluding local firms, the IRD has been criticised by members of the IT industry, with most believing the government should be keeping work on New Zealand shores.

"The way it's going now is much more like economic vandalism than really clever economic thinking," Don Chrisitie, NZ Rise, told TVNZ.

The ONE News show have released figures to back up the discontent, revealing the IRD paid French firm Capgemini $15m during 2012 to work on its restructuring plan.

But despite the multinational company winning the contract fan and square, local firms believe the criteria set excluded them for bidding.

"You have to have $400 million worth of assets for example, it makes it very very difficult for New Zealand ICT companies to get over those bars," Russel Norman, Green Party co-leader, says.

More worringly however, Kiwi companies fear further exclusion when the IRD comes to upgrade their system, which would see the $1.5bn contract head overseas.

The IRD were unavailable for full comment when pressed, but did stress that Capgemini's appointment was motivated because of the company's "global experience in the public sector."

They also reiterated their stance and claimed during the upgrade "there will be opportunities for New Zealand companies - either on their own or in partnership with others."

Do you think the IRD should be looking closer to home? Or should they go with the best companies for the job? Tell us your thoughts below