PeopleSoft wins $50m contract in Mexico

Enterprise application software provider PeopleSoft has won the largest combined software and services contract for Mexico`s Tax Administration Service (SAT). The deal is valued at more than $50 million, including revenue from software licences, professional services, and maintenance fees over a 24-month period.

After a bidding process, SAT licensed PeopleSoft Enterprise Financial Management, PeopleSoft Enterprise Customer Relationship Management, PeopleSoft Enterprise Performance Management, and PeopleSoft Enterprise Portal.

The agency will engage PeopleSoft Global Services to provide implementation and consulting services for the project.

"PeopleSoft`s applications and technology will enable Mexico to transform its taxation system, providing more responsive service to the country`s individual and corporate taxpayers and increasing countrywide tax collection," says Mike Evans, MD of PeopleSoft Africa.

SAT employs more than 30 000 people in over 1 100 offices across Mexico. The country`s federal tax system is populated by numerous centralised and decentralised databases across 66 collection centres.

The agency`s primary goal for the modernisation and integration of its information systems is to consolidate the data into a single, integrated platform to better identify individual and corporate taxpayers and increase collections from noncompliant taxpayers. With the implementation of the new platform, the World Bank estimates SAT can dramatically reduce tax evasion and increase tax revenues through improved collections. The World Bank is financing the deal with PeopleSoft.

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"Governments today are embracing technology to streamline business processes, become more responsive to taxpayers, and increase revenues," Evans says. "PeopleSoft provides innovative solutions that help modernise and reform government processes around the world."

Before awarding the contract to PeopleSoft, SAT conducted a comprehensive vendor evaluation that included testing the solutions of all the bidding companies over a three-month period in a controlled environment. Three external academic and research institutes assisted SAT in this evaluation process.

A core component of the SAT implementation is the end-to-end revenue management solution PeopleSoft Enterprise Revenue Management. This solution enables service-focused organisations to more effectively manage collections, locate lost revenue, adjust to dynamic market conditions, and provide a consistent citizen experience.

"With PeopleSoft Enterprise Revenue Management, government agencies can seamlessly collect and manage fees from revenue streams such as federal and state taxes, property taxes, vehicle registrations, business licences, building permits, healthcare services, public housing, court fees, parking tickets, and social services," Evans says.

When complete, SAT`s project will provide Mexico`s taxpayers with a variety of online services through a SAT portal, and direct contact to SAT via multiple channels such as Web, phone and e-mail. Taxpayers will have secure, online access to personalised account statements with complete information on their fiscal situation. They can also access features including a payment calendar, message centre and service status.