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Data Reenginering Case Study

IRS Gives Technology Another Try

The IRS is endeavoring once again to modernize its aging computer system, after the Treasury Department last year put a stop to a 10-year, $3.3-billion Tax Systems Modernization program that turned out to be a bust. The IRS admitted it had wasted $400-million over the last decade on the failed effort. The new plan, which won't go into effect until October 1998, is expected to cost hundreds of millions of dollars and could take several years to complete. "This is the world's largest modernization of all time; there is no question about that," says the IRS's assistant commissioner in charge of technology. This time around, the agency plans to ask private business to help it develop a "real world" information system in increments, instead of having government staff design systems that just weren't realistic. (Tampa Tribune 26 May 97)

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