HMRC awards Salesforce contract worth up to £2.4bn for service overhaul
HMRC has awarded Salesforce a contract worth up to £2.4 billion to overhaul its customer relationship management systems over at least ten years, with the deal potentially extending to 2041 through optional extensions. The contract represents a major investment in modernising the tax collector's customer-facing technology and addresses longstanding complaints about HMRC's service quality, following a House of Commons investigation that found the department had allowed its phone service to deteriorate significantly. Salesforce won the contract in competition against Pegasystems (Pega) to provide a cloud-based CRM platform.
The new system will deliver customer and case management, marketing, messaging, analytics, and AI capabilities, with additional functions such as fraud detection and identity verification to be supplied by third parties. HMRC's initial estimate for the procurement was £1 billion, though this increased to £2 billion excluding VAT (£2.4 billion including VAT) during the formal tender process. The CRM platform will integrate with a separate Contact Centre as a Service contract worth £600 million awarded to Capgemini, underlining the scale of HMRC's technology transformation. The investment follows severe service deterioration; during 2023–24, HMRC disconnected nearly 44,000 callers after 70 minutes' waiting time, whilst only two-thirds of calls were answered with an average wait exceeding 23 minutes.
- HMRC awards Salesforce £2.4B CRM contract running until at least 2036, possibly 2041
- System aims to address years of poor customer service, massive phone queues, disconnections
- Cloud platform includes AI, case management; integrates with separate £600M contact centre deal
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Originally published by The Register as “HMRC bets up to £2.4B on Salesforce for taxpayer CRM overhaul”.