Case study - CPC Bangalore: business process redesign

Abstract

Business process redesign is a critical aspect of change management which lies at the heart of organizational transformation. Managing change is never easy and Indian Income Tax Department (ITD) sought to remove redundancy for taxpayers as well as ITD by setting up Centralized Processing Center (CPC) Bangalore. Use of technology as a strategic tool to revolutionize the filing and processing of tax returns in India has a number of social implications for society in addition to achievement of primary objective of increasing IT collections for the Indian Government. Minimal interaction between taxpayers and IT officials reduces the scope of corruption and encourages taxpayers to pay legitimate share of taxes. Prompt tax refund also creates a perception of an honest and efficient IT system which morally discourages tax evasion. Public private partnership (PPP) model with Infosys as private partner enables government to utilize world class services of a highly intensive information technology company. Apart from significant financial benefits of such an arrangement (lower cost of compliance), tax reforms initiated as a result of setting up CPC have the potential to significantly enhance quality of life of a large section of Indian society.