See also:CIO Profile: HMRC's Mark Hall on IT rationalisationCIO Profile: HMRC's Mark Hall on making tax collecting more responsive\nThe amount and scope of change, largely led by IT, at HM Revenue\u00a0& Customs (HMRC) is such that the Whitehall department has in effect two IT leaders: one for the day-to-day IT operations and another for changing the organisation and its IT.\nMark Hall is HMRC\u2019s director of IT Services and also deputy CIO. Phil Pavitt, formerly CIO at Transport for London and Centrica, is the organisation\u2019s Director General of Change and its CIO. While Hall does report directly to the straight-talking Pavitt, he says that the Director of Change half of the job fills most of Pavitt\u2019s time.\n\u201cPhil has been a driving force in making change a reality,\u201d Hall says of his boss. \u201cHe has galvanised the IT community and the business at HMRC.\n\u201cCustomers are changing and are more IT-led, and we are trying to get ahead of that. Our architects had the right ideas; Phil has gone and got the business buy-in and the business managers talking about change.\u201d\nThe changes taking shape at HMRC are root and branch, affecting every process the organisation is involved in and especially how IT touches them.\nBroad experienceHall\u2019s broad remit covers the IMS department, Live Services for applications and infrastructure, IT business alignment and development, architecture, project management teams, financial planning for IT, IT contracts management, IT solutions for requirements and build, internal transformation of IT and the management of the 1100 staff in IT, many of whom, he explains, are professional civil servants and not pure IT staff.\n\u201cThe level of business knowledge they have surpasses every organisation I have been with before. Many have been tax \u00adinspectors,\u201d he says of his IT team, which is reducing in size.\nAs the government\u2019s highest spending department and also its primary revenue source, HMRC has been set three stiff challenges in the latest government spending review.\nIt has to maximise revenue flows so that people are paying the right amount of tax, reduce its cost base by 25 per cent and improve the customer experience.\n\u201cThe way to achieve those outcomes is through a customer segmentation strategy that will change the way we approach our processes,\u201d says Hall.\nThis new strategy follows hard on the heels of a series of major changes that HMRC has undergone, whose ramifications are still working their way through the department.\n\u201cThe merger of Revenue and Customs was very significant, involving two IT systems, two organisations, two different supplier contracts,\u201d he says of the 2005 \u00addepartmental merger.\nThe reorganisation followed the re\u00adnegotiation of the Aspire outsourcing contract a year earlier, with Capgemini winning the deal that also calls on Fujitsu, Accenture and BT to deliver areas of technology support to HMRC.\nAs with all mergers the process of integrate, improve, deliver and optimise had to be followed and Hall is confident that HMRC is now at the optimise phase.