HMRC has officially signed a multi-year contract with Capgemini, NiCE, and Route 101 to overhaul its customer experience operations.
The contract, first rumored back in May, will consolidate HMRC’s legacy infrastructure into a unified, cloud-native platform built around NiCE CXone, deployed on a purpose-built UK sovereign cloud.
Capgemini takes the prime supplier role, responsible for implementation, system design, workflow integration, and ongoing support, while Route 101 handles professional services delivery and telephony infrastructure through communications provider Gamma.
Darren Rushworth, President of NiCE International, underlined the weight of the deployment:
“HMRC serves every taxpayer in the United Kingdom, and the scale and importance of its contact center operations demand a platform built for enterprise-grade performance, security, and AI-led innovation.
“CXone is uniquely positioned to deliver on that mandate, helping HMRC modernize service delivery and raise the bar for citizen experience.”
A Procurement Process that Started with 13
The announcement closes out a selection process that, as CX Today explored in detail last month, narrowed from 13 initial bidders down to a final two: NiCE and Genesys.
The criteria did most of the filtering, as bidders were required to carry at least $190 million in annual CCaaS revenues, and the contract couldn’t account for more than 10% of a supplier’s total CCaaS business. That alone eliminated the vast majority of the market.
HMRC’s reasons for wanting the deal are not difficult to understand, with a 2024 National Audit Office report finding that taxpayers were facing average telephone wait times of nearly 23 minutes, with an estimated 72% of calls driven by failure demand – people calling because a process had broken down, not because they needed genuine help.
The NAO concluded that taxpayers were being “let down.”
Rob Walker, Managing Director of Capgemini in the UK, framed the announcement as more than a technology swap:
“This new agreement reflects the strength of our long-standing commitment to HMRC innovation and our ability to deliver complex, large-scale, AI-powered transformation programs that create tangible value for citizens.
“We are building a value partnership that goes beyond technology delivery – one that is focused on long-term outcomes, innovation, and continuous improvement for millions of users across the UK.”
What the Platform is Actually Built to Do
For UK taxpayers, the new platform promises smarter self-service, reduced wait times, seamless channel switching, and more accurate, personalized information across interactions.
HMRC agents will get real-time AI-driven guidance to help resolve queries faster and with fewer errors. Critically, HMRC has confirmed that targeted support for digitally excluded users and those in vulnerable circumstances will be maintained throughout.
Route 101’s Fiona Virtue, Head of Public Sector, summed it up:
“At the heart of this program is a commitment to better serve the public. By combining technology with human insight, we’re helping HMRC create more seamless, accessible experiences that support people and businesses, and strengthen confidence in the services that underpin the UK economy.”
The Bristol-based Route 101 is no stranger to deployments at this scale, having worked alongside NiCE on the Department for Work and Pensions transformation, a 40,000-seat engagement that served as a key proof point throughout the HMRC procurement process.
NiCE’s Government Playbook Keeps Growing
The contract is valued at approximately $670 million – closer to $814 million including VAT – and runs from May 2026 through May 2034, with the option for a two-year extension.
NiCE’s September 2025 acquisition of Cognigy also means the platform now carries a native conversational AI agent layer, giving HMRC headroom to innovate without needing to look elsewhere.
The confirmation rounds out what is fast becoming a defining run for NiCE in the government CCaaS segment.
Alongside DWP and a $578 million deployment for Services Australia in 2024, HMRC adds to a growing portfolio of national-scale reference deployments that are becoming increasingly difficult for competitors to close the gap on. Track records at this level can’t be acquired overnight.
