With the HMCE/Revenue merger on the horizon, it was essential to guarantee continuity of service and minimise disruption, according to Ian Pretty, head of policy and strategy at the Revenue's Aspire unit.

'The merger with HMCE, alongside the Gershon efficiency review, means that using IT to deliver business transformation is more important than ever. We need to make sure we're up and running as soon as possible,' he told AccountancyAge.com sister website, vnunet.com.

Like all government departments, the new HMCE is charged with making 2.5% efficiency savings each year to 2008.

Achieving this will mean using IT to drive down costs while increasing the amount of revenue collected, said Pretty.

Former mmO2 chairman David Varney has been handed the task of merging HMCE and the Revenue. The appointment of a chief information officer to oversee the systems integration is expected soon.

The Revenue set up four teams to oversee the handover, examining issues around personnel, contractual arrangements, ongoing projects and contract governance.

Eric Woods, government practice director at analyst firm Ovum, suggested that getting human resources issues ironed out in advance would be a crucial factor in ensuring a smooth transition.

'With around 3,000 [employees] involved, it is important to have the key people in place. Managing that transition is a big test,' he said.

Capgemini takes charge of 73,000 desktops, 200 systems, 20 ICL mainframes, and 177 IBM and HP Unix servers.

The NIRS2 National Insurance system will continue to be run by Accenture until early next year, at which time it is expected to become part of the Aspire contract.