1. HMRC Case Study Phil Pavitt, Director General for Change and CIO, HM Revenue & Customs UNCLASSIFIED

2. HMRC’s IT Function In 10/11 HMRC collected £468.9bn in revenue & issued £40bn in entitlements 600+ Systems 80,000 Desktops 6,000 Data Centre Servers 10,000 Printers 55m employer PAYE returns processed each year 6.9m (78%) of Self Assessment Returns filed online 200m calls handled each year 7m Tax Credits renewals processed 1,100 Interfaces 7,500 Laptops 2,000 Blackberry’s 75,000 import / exports every day 1.2 trillion banking transactions via Government Banking System 450m emails sent per year HMRC Website 31st Jan 11 – 3rd busiest In the world 608m images printed per year 1 billion transaction s processed per year

3. Our Technology Challenges Include:- Huge, complex, ageing and costly IT estate SR10 - increase yield by £20+ billion - reduce costs by 25% - deliver better services to our customers (internal and external) To meet these challenges we need to:- Reduce our costs Reduce the complexity of our IT estate Increase our systems performance Build platforms for the future

4. Our Tactical Solution Reduce costs:- Benchmarking & Tripartite – To engage with third party benchmark companies to verify and validate or enable challenge of supplier costs Consumption Unit Pricing – To show the costs of our IT and change the way our costs are charged from a fixed to transactional basis Reduce complexity:- Introduce business process re-engineering Cost Not to Exceed – To stop IT costs rising following change projects Increase performance:- User centric focus 25,000 new PCs, New multi-functional printing devices Improved video conferencing and telephony service Build platforms for the future Aurora transformation programme

5. Our Strategic Solution To create One HMRC and deliver our challenging Spending Review 2010, HMRC has established these core building blocks: Customer Centric Strategy Organisational design Higher emphasis on compliance and closing the tax gap Better staff engagement and communication Business Process Re-engineering New IT Strategy (The13 Machine Strategy)

6. The 13 Machine Strategy Component Integration (CI) Business Process & Decision Management (BPDM) Customer IdentityPortalAdvisor Interaction Enterprise Content Management ERP Enterprise Tax Management Platform (ETMP) ConnectData Warehouse NPS Excite Benefits & Credits Rules Engine Caseflow

7. Working with Suppliers …. HMRC recognises key strategic suppliers are fundamental to the IT changes that were always needed but are now enhanced by the SR10 challenges HMRC is looking to build deep and strategic supplier relationships at all levels, not just within IT

8. Thank you