CIO Profile: HMRC's Mark Hall on IT rationalisation

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Underpinning the bulk of IT at HMRC is SAP, which manages everything from HMRC staff to case-flow and CRM.

In the background, at least at the moment, is the government’s plans to reduce government spending. All decisions by Hall and Pavitt are made with cost reduction very much front of mind, he says.

“As part of the last government spending review we will do a lot of business change, so we have to ensure that IT aligns with that business change. 13 Mach­ines supports the cost drivers and the intelligence-based strategies.” The Coalition Government cut the HMRC budget by £125m for 2010/11 as part of the government policy to reduce public spending by £6bn. IT, Hall explains, will contribute £75m worth of savings to that £125m.

“It was a significant challenge. What we are working on has already delivered £161m in savings. We took some of those savings and invested in de-commissioning.” He breaks the savings down; £50m was saved through contract re-negotiation with suppliers, £49m through price restructuring with suppliers and £62m saved through a re-investment of that £49m saving back into IT.

“The thing that is really different and ­innovative is to not just re-invest the money, but to make a better return with it. We have done a lot of work not only with suppliers, but also on behaviour at HMRC.”

Copyright © 2011 IDG Communications, Inc.

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