HMRC says its Salesforce system could cost up to £4.4 billion over 15 years. Its low estimate is £1.7 billion.
Britain's tax office published a summary business case on 30 October, The Stack reported.
It weighed six options, including doing nothing and building its own system.
HMRC rejected building in-house because of "delivery complexity, cost and timescale risk". It also rejected combining several off-the-shelf products because of "high integration complexity and coordination risk". The case does not name Salesforce, though HMRC's contract notice of 15 October does, at up to £2.4 billion.
The whole-life range of £1.7 billion to £4.4 billion covers 15 years and includes VAT and an allowance for optimism bias. HMRC says spend will be "committed incrementally", with review points along the way. It expects £924 million to £1.25 billion in savings over the 15 years. The new system replaces more than 70 old ones.
For procurement teams, the gap between the low and high estimate is £2.7 billion. HMRC names the review points as its tool for controlling that cost. The Stack's report does not say what each review point can change.
Sources
Our file on Salesforce
- 5 Nov
Salesforce said Coworker had more than 185,000 users. CIOs still need savings evidence Salesforce has not supplied.
- 4 Nov
Half of Slack messages are no longer from people, Salesforce says. It counts a billion messages a day.
- 3 Nov
Salesforce agreed to buy Cresta, whose AI agents answer customer calls for Marriott and Comcast. It gave no price.
- 31 Oct
Salesforce won a 10-year Army contract worth up to $5.6 billion. Now it is buying Rune, a start-up the Army already uses.
- 28 Oct
Salesforce says AI agents can rack up costs before anyone notices. It announced a hard stop at the budget, with no price.
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