US firm wins Inland Revenue contract

(First Edition)

A US information technology company has been awarded the contract to handle the computerisation of Inland Revenue tax accounts, writes Chris Blackhurst.

EDS, part of General Motors, the car group, defeated the other contender, an alliance of CSC Europe/IBM (UK), to win the work, which costs pounds 250m a year. Revenue officials were quick to emphasise that despite EDS's overseas roots, 'all the computer work involving the processing or handling of confidential information will, as now, be carried out in the UK. Access to confidential information will not be permitted outside the UK'.

About 2,000 Revenue employees will be transferred to EDS. This is the second major civil service contract to be won by EDS in as many weeks. Last week, the Government announced the shifting of the DVLA's IT branch to EDS.

Formerly owned by Ross Perot, the US presidential contender, EDS achieved worldwide fame by springing its employees from Iran after the overthrow of the Shah.