HMRC to save £1bn in IT costs

HMRC could save £1bn by squeezing its technology requirements, according to
its IT director Mark Hall.

Hall said he was working with contractors Capgemini to reduce computer
systems in the department from more than 600 to 13, as well as implementing
other efficiency measures

The overhaul will include consolidating the current 12 systems used to
calculate PAYE taxes into a single system – National Insurance PAYE System.

“We had a challenging set of legacy systems and, with the cost of running
those increasing every year, every pound that we spent on running them was a
pound we could not spend on investment,” said Hall.

Capgemini, who are paid £750m annually, were awarded the contract in 2004 and
have reduced running costs of the IT division by £152m a year. It estimates it
will save the IT department £1.2bn by the end of its contract in 2017.

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