Transforming IT at HM Revenue & Customs 11/11/2010 Transforming IT at HM Revenue & Customs Phil Pavitt, CIO and Director General for Change, HM Revenue & Customs 28th March 2012

11/11/2010 What the papers say!

The reality is…. 1 billion transactions processed per year 608m images 11/11/2010 The reality is…. 1 billion transactions processed per year 608m images printed per year 600+ Systems 1,100 Interfaces 7.65m (81%) of Self Assessment Returns filed online 2,000 Blackberry’s In 10/11 HMRC collected £468.9bn in revenue & issued £40bn in entitlements 80,000 Desktops 450m emails sent per year 55m employer PAYE returns processed each year 200m calls handled each year 10,000 Printers 7,500 Laptops 75,000 import /exports every day 8.3m Tax Credits renewals processed in 10/11 6,000 Data Centre Servers 1.2 trillion banking transactions via Government Banking System

Our challenges include.. 11/11/2010 Our challenges include.. Huge, complex, ageing and costly IT estate Spending Review 2010 Reduce costs by 25% Increase yield by £20+ billion Reduce fraud and error within the tax credit system by £2billion a year 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

HMRC’s IT Transformation Programme 19/11/2018 11/11/2010 HMRC’s IT Transformation Programme HMRC’s IT Transformation Programme (Aurora) was designed to: - bring in standardised systems with common industry components; - switch off legacy systems coming to the end of their life and - invest in modern, more flexible technologies to better meet HMRC’s needs. The transformation savings initiatives were paid for by reinvesting money saved from price reductions and supplemented by re-cycling savings from initiatives delivered between Sept 2009 and March 2011. This innovative approach to recycling cost from the old equipment to fund projects has also enabled us to replace our end user equipment, at no additional cost to HMRC. 5

11/11/2010 This has resulted in …. Successful delivery of 111 projects leading to:- 65 applications being switched off 15,810 surplus workstations disabled 1,954 servers de-commissioned Saving £161m a year running costs and at least 4,000 tonnes CO² The money saved from price reductions and switching off systems is being recycled to fund projects so our staff have more modern, cheaper and greener IT equipment, all at no extra cost Managed print service 25,000 New Desktop PCs Video conferencing facility Telephony refresh Desktop Refresh

To make this sustainable our tactical solutions include.. 11/11/2010 To make this sustainable our tactical solutions include.. Reducing 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. This delivered £24m savings in the first year Renegotiating the Aspire contract Reducing complexity:- Business process re-engineering Cost Not to Exceed – To stop IT costs rising following change projects Building platforms for the future:- 13 Machine Strategy

The 13 Machine Strategy Event Name Here 12/02/2007 19/11/2018 11/11/2010 The 13 Machine Strategy Component Integration (CI) Business Process & Decision Management (BPDM) Customer Identity Portal Advisor Interaction Enterprise Content Management ERP Enterprise Tax Management Platform (ETMP) Connect Data Warehouse NPS Excite Benefits & Credits Rules Engine Caseflow Project Name: HMRC v1.8 Project Name: HMRC MH-ETSDP v1.0 8 8

Delivering the Spending Review 11/11/2010 Delivering the Spending Review

End User Device (EUD) Strategy 11/11/2010 The End User Device Strategy aims to create standardisation that will allow government devices to be supplied as commodities in an open and competitive marketplace. Competitive commoditised market drives down cost of devices Increased productivity and flexibility – the right tools in the right context Enable use of cloud computing and government Apps Store Reduced risk Reduced time to deploy

11/11/2010 To summarise…. We have made real progress in: significantly reducing the cost of our IT making our IT estate sustainable stabilising the service and improving user centricity transforming our IT By reducing costs, taking big steps to make the IT estate sustainable and improving the customer experience we have earned credibility both within HMRC and across government

And finally….!

Phil Pavitt phil.pavitt@hmrc.gsi.gov.uk 11/11/2010 Phil Pavitt To be an intelligent and trusted partner to the Business, professionally delivering customer centric, predictable integrated IT services in a cost effective framework of high quality performance. phil.pavitt@hmrc.gsi.gov.uk