Who said IT spending was tight? Californian business applications software maker PeopleSoft Inc scored its largest ever corporate deal this week by signing a whopping $50m plus contract to overhaul Mexico’s aging tax administration system.
Pleasanton-based PeopleSoft beat ERP rivals Oracle Corp and SAP AG for the lucrative deal.
PeopleSoft will work closely with project partners IBM Corp (Business Consulting Services) and SPL WorldGroup Inc to consolidate taxpayer data strewn across disparate databases and systems.
The deal includes software licenses, professional services and maintenance fees that are likely to be spread over a period of two years.
The software being implemented includes PeopleSoft’s enterprise financial management, CRM, performance management and portal products. A core component is PeopleSoft’s enterprise revenue management application which was recently included in the 8.9 CRM solution and co-developed by San Francisco-based SPL WorldGroup.
Mexico’s Tax Administration Service (SAT), which is equivalent of the US Internal Revenue Service (IRS), employs over 30,000 people in Mexico. It initiated the project to improve identification of taxpayers in an economy rife with tax evasion and to drive greater revenue through more collections.
The project will also provide Mexican taxpayers with online services, including online filing and electronic media contact channels, that the tax agency says will make it more responsive to individual and corporate taxpayer needs.
According to US government statistics 47m tax returns were filed online last year, while 85m were by paper method. The IRS hopes to have 80% of US taxpayers filing online by 2007.
SAT is being helped by the World Bank to finance the deal.
PeopleSoft has around 850 federal, state, and local government customers worldwide; including a large chunk of US federal cabinet-level agencies, the Australian department of social services, and Japan’s postal system.
SAT will no doubt be keeping a close tab on PeopleSoft’s progress following the allegedly botched $135m implementation of a social security payments system by Accenture for Ontario’s Ministry of Community and Social Services and a UK government enquiry into the failure of a tax credit system introduced by EDS in April 2003.