1. 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

2. 11/11/2010
What the papers say!

3. 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 s 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. Delivering the Spending Review
11/11/2010
Delivering the Spending Review

10. 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. 11/11/2010
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

12. And finally….!

13. 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.