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The Post Office began to consider the benefits of introducing automatic data processing (ADP) in the 1950s. The first large scale application of a computerised system to Post Office operations was the introduction of the LEAPS system (London Electronic Agency for Pay and Statistics) in 1958. Prior to this, computers had been used in remittance work and postmaster balancing work, as well as in the Post Office Savings Bank.

The LEAPS system was introduced to replace the manual preparation of pay. Two Elliot 405 computers were developed and used for payroll, pensions and statistical work; this meant that the Post Office was now one of the largest users of ADP equipment in the UK.

Gradually, computer applications and ADP systems were proposed and introduced throughout the organisation. In 1961, the Post Office looked at ten areas of Head Post Office work where ADP could be applied. The areas considered were: mail circulation; delivery and collection planning; motor transport scheduling; payroll and staff; postal staff planning and control; cash accounting by counter machine; broadcast receiving licences; postal costing; income and expenditure accounting. A review was undertaken and it was decided to proceed with computer application in all these areas. Eventually, ADP and the use of computer applications and systems were applied to all aspects of postal work.

Several factors had to be considered each time a new proposal for a computer application/system was thought up - the Post Office had to consider whether or not it was profitable to introduce the new system and if there was an urgent need for it, as well as the practicialities of implementation and optimum timing. They also had to think about the effect it would have on the public and on Post Office staff as, inevitably, the introduction of ADP and computer applications meant that fewer staff were needed.

Up until 1969, the Post Office was a government department. Its change of status brought in legislation, namely the Post Office Data Processing Act, 1967 (see related material) which enabled the establishment of the Data Processing Service. The Data Processing Service had two arms - the Post Office Data Processing Service (PODPS) which provided ADP services and support to the Post Office and the National Data Processing Service which worked for external customers.

While the 1960s saw the Post Office considering ways of introducing ADP, the following decades saw the increasing use of computers in Post Office work, particularly in the 1980s with various plans to implement and improve computer systems for data capture and streamlining data processing methods. The counter automation project in the 1980s (which looked at the possibility of introducing a computer system to record cash transactions at local offices) is just one example.

The 1980s also saw the Post Office's Information Technology Department informing people of their work and developing IT strategies; the work resulted in the introduction of several computer systems to assist with the day to day running of the Post Office.

Around 1990 the Information Technology Business of the Post Office became known as 'iT'.