HMRC signs three low-code contracts worth up to £657 million, challenging cost assumptions

HM Revenue & Customs, which collected £938.8 billion in the latest financial year, announced three major low-code contracts worth a combined £657 million. Atos will provide specialist low-code leadership services under a £78.2 million, three-year agreement with optional extensions. Cognizant secured a £360 million deal to design, build, test and manage low-code applications, while Coforge received a £219 million contract for comparable services.

These awards are part of the DALAS framework, covering technologies like Pega, ServiceNow, Microsoft Dynamics and Power Platform, and were issued through Lot 4a of the framework. The contracts come after the National Audit Office highlighted the difficulty and expense of updating HMRC’s extensive legacy systems. The government initially valued the broader DALAS framework at up to £4.5 billion.