IBM and India Tax Authority in $45 Million Services Agreement

IBM to Modernize IT Systems Across Three Data Centers and 745 Income Tax Offices Over Five Years

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NEW DELHI, INDIA - 07 Jun 2007: India's Central Board of Direct Taxes (CBDT) and IBM (NYSE: IBM) today announced a US$45 million, 5-year services agreement to modernize CBDT's IT Infrastructure. As the systems integrator IBM will offer integrated infrastructure solutions to CBDT's three data centres in Delhi, Mumbai and Chennai and facilities management services for the Income Tax Department (ITD) across 745 offices in 510 cities in India. The solution includes IBM's high performing System p servers, storage, security solutions and a host of other associated technologies and services.

The partnership will further help improve CBDT's IT systems portfolio. The objective is to improve efficiencies by creating a standardized ecosystem through a single database available to CBDT officers across India. This project along with other key projects being executed by CBDT will lead to an increase in its tax base and revenues. This will also make it faster, cheaper and more secure for CBDT to scale up for future demands. The new, flexible solutions will also allow CBDT to quickly accommodate new or amended tax legislation and priorities.

"IBM is proud to be associated with this prestigious Mission Mode Project of the Government of India. Government agencies are increasingly reliant on information technology to deliver greater responsiveness and improved quality of service to a wide range of stakeholders," said Shankar Annaswamy, Managing Director, IBM India Pvt Ltd. "This partnership brings to the customer IBM's unique capability in the tax domain having executed similar large projects globally and establishes IBM's solution strengths in the Public Sector domain. This project will be a reference for both the Government and IBM as a showcase of a public-private partnership model and technology-centric enabler for improving citizen centric services," said Mr. Annaswamy.

Central Board of Direct Taxes, Ministry of Finance, Government of India

Since 1 January 1964 the Central Board of Direct Taxes (CBDT) has been charged with all matters relating to various direct taxes in India and it derives its authority from Central Board of Revenue Act 1963. The CBDT is a part of Department of Revenue in the Ministry of Finance. On one hand, CBDT provides essential inputs for policy and planning of direct taxes in India, at same time it is also responsible for administration of direct tax laws through Income Tax Department.

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