Why is low-code proving expensive for HMRC?

While low-code promises efficiency, large-scale public sector implementation involves significant costs for comprehensive program oversight, stringent governance, robust security, complex integration with existing legacy systems, and extensive staff training.

Which companies secured the major low-code contracts from HMRC?

HMRC awarded significant low-code contracts to French consultancy Atos (£78.2 million), Cognizant (£360 million), and Indian tech services company Coforge (£219 million).

UK taxman discovers low code doesn't mean low cost with £657

Q: What is the Digital and Legacy Application Services (DALAS) framework?

The DALAS framework is a multi-billion-pound procurement vehicle established by Crown Commercial Service and HMRC to replace expiring IT contracts and move HMRC towards an application services support model less dependent on legacy technologies.

HM Revenue & Customs (HMRC) has committed up to £657 million to three. Major low-code software development and support contracts, challenging the common perception. That low-code solutions inherently translate to low costs, particularly within the complex landscape. Of public sector digital transformation. These significant awards, part of the broader Digital and Legacy Application Services (DALAS). Framework, underscore the UK tax authority's urgent. Drive to modernize its extensive and often criticized legacy IT infrastructure. This guide covers UK taxman discovers low code doesn't mean low cost with. £657M awards in detail. This guide covers UK taxman discovers low code doesn't mean low cost with. £657M awards in detail. This guide covers UK taxman discovers low code doesn't mean low cost with. £657M awards in detail. This guide covers UK taxman discovers low code doesn't mean low cost with. £657M awards in detail.

UK taxman discovers low code doesn't mean low cost with £657M awards: What. Are the Details of HMRC's Low-Code Investment?

The substantial investment sees French consultancy Atos securing a £78.2 million contract for "specialist low-code leadership services." This Lot 3 deal under the DALAS framework tasks Atos with crucial. Program oversight, supplier management, governance, assurance. And delivery support for HMRC's low-code technology estate. Michael Herron, Head of Atos UK&I, emphasized the firm's pride in expanding its "long-standing relationship with HMRC" and its readiness to support the delivery of "better digital experiences for citizens at pace." The contract has an initial three-year term, with options for two one-year extensions.

What are the Details of HMRC's Low-Code Investment? — UK taxman discovers low

Meanwhile, Cognizant has been awarded a contract worth up to £360 million for "specialist low-code build, configuration, DevOps and live service management services." This Lot 1 agreement, running from July 13, 2026, to July 12. 2031, covers the design, development, testing, deployment, operation. And continuous improvement of HMRC's low-code products and services. Rohit Gupta, Cognizant's UK head, highlighted the deal as a continuation of their. Partnership with HMRC, aiming to deliver more efficient services to citizens.

Indian tech services company Coforge secured the third major work package, a £219. Million Lot 2 contract, providing services identical to Cognizant's, focusing on build, configuration, DevOps. And live service management for HMRC's low-code estate. This contract also runs for an initial three years with two optional one-year. Extensions, from July 27, 2026, to July 26, 2031. The technologies supported across these contracts include prominent low-code platforms. Such as Pega, ServiceNow, Microsoft Dynamics, and Power Platform.

Why Does Low-Code Not Always Mean Low Cost for Public Sector?

HMRC's substantial investment highlights a critical lesson:. While low-code platforms promise accelerated development and reduced reliance on traditional coding, their. Implementation at an enterprise scale, especially within a complex public sector environment, can incur significant costs. The Digital and Legacy Application Services (DALAS) framework, under which these contracts fall, was initially valued at up to £4.5 billion, with a later phase assigned a combined estimated value of £2.8 billion for Lots 1, 4a, and 4b. This reflects the sheer scale and intricacy of modernizing HMRC's IT estate. Which the Whether you are new to UK taxman discovers low code doesn't. Mean low cost with £657M awards or. Already experienced, the sections below have you covered. Whether you are new to UK taxman discovers low code doesn't mean low. Cost with £657M awards or already experienced. The sections below have you covered. National Audit Office (NAO) has consistently flagged as one of the UK's largest and most complex.

The NAO has previously warned that "Remediating legacy systems is taking HMRC longer than it had expected and is costing more." Reports indicate that HMRC's administrative costs for running digital tax systems increased. By 18% between 2019-20 and 2023-24. And its digital services have not always delivered the anticipated benefits or efficiencies. The challenges extend beyond mere software licensing to encompass comprehensive program oversight, stringent. Governance, robust security, seamless integration with existing systems. And extensive training for staff. For government agencies handling sensitive data, custom encryption protocols and secure data-handling practices. Are paramount, often requiring a level of customization. That standard low-code platforms may not easily provide.

What This Means for Tech Readers

For tech professionals and organizations, HMRC's multi-million-pound low-code awards offer several key insights. Firstly, they underscore the growing maturity and strategic importance of low-code platforms in. Large-scale enterprise environments, particularly in the public. Sector's ongoing battle against legacy IT. The involvement of major players like Atos, Cognizant. And Coforge signals a robust market for specialized low-code implementation and support services. Moving beyond simple application development to encompass complex governance, DevOps. And live service management. Secondly, the significant expenditure serves as a reminder that. While low-code can democratize application development and accelerate delivery, it requires substantial investment in expertise, integration. And oversight to achieve desired outcomes at scale. The "low-cost" promise of low-code often applies to smaller, departmental initiatives, not to. The wholesale transformation of critical national infrastructure. This necessitates a nuanced understanding of total cost of ownership. Including long-term support, security, and scalability considerations.

What's Next for HMRC's Digital Transformation?

HMRC's digital transformation journey, propelled by these low-code contracts, will continue to be. A closely watched case study for public sector modernization. The focus will likely remain on integrating these new low-code solutions with existing, often decades-old, systems. While ensuring data security and regulatory compliance. The evolution of low-code platforms, particularly with the increasing integration of AI for. Design suggestions and automated workflow generation, could. Further influence HMRC's strategy, potentially enabling even faster development cycles and greater efficiency. However, the ongoing challenge will be to demonstrate tangible returns on this substantial. Investment, not just in terms of new applications. But in measurable improvements to taxpayer services, operational efficiency. And a reduction in the overall cost and risk associated with legacy technology. Future procurements under the DALAS framework. Which is designed to be multi-supplier and multi-year, will likely continue to diversify risk. And foster competition among providers as HMRC strives to achieve its vision of. Becoming a modern and trusted tax and customs authority.