Sovereign Cloud Key to 40K-Agent NiCE Deal

Why businesses can’t afford to overlook cloud sovereignty and compliance

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Published: June 9, 2025

Rhys Fisher

While data regulations mean companies should always consider the host region when migrating to the cloud, it is especially important when the organization concerned is a government department. 

When that department handles payroll taxes and pensions for the whole of the United Kingdom, it’s no longer just about compliance, it’s also about people’s livelihoods. 

NiCE’s new contract with the UK Department of Work and Pensions (DWP) is a collaboration with cloud systems integrator Route 101 to set up one of Europe’s largest cloud contact centers. 

The core of the initiative is the modernization of phone and digital services for more than 40,000 agents. 

In order to achieve this, the companies will leverage NiCE’s CXone Mpower CCaaS platform.

In discussing the news, Darren Rushworth, the President of NiCE International, provided more details on how the platform will enable the DWP to deliver cutting edge customer service.

He said: “With CXone Mpower’s industry-leading platform, DWP has the power to fulfil their service modernization agenda.

Utilizing the platform, DWP will be able to enhance digital service delivery and support its ambition to upskill its workforce.

But why does this matter to businesses?

Cloud Sovereignty: A Critical Differentiator in Public-Sector CCaaS Contracts

NiCE and Route 101’s wider mission is to help guide the DWP through its strategic shift from legacy on-premise systems to a secure, UK-sovereign cloud platform.

That last part is crucial – particularly from an enterprise perspective.

For organizations like the DWP, migrating to the cloud is about more than technology upgrades; it’s about meeting stringent data sovereignty and security requirements mandated by government regulations.

This focus on cloud sovereignty reflects a broader trend impacting enterprises across regulated industries such as finance, healthcare, and government services.

As data privacy laws tighten globally, companies must ensure their cloud solutions keep sensitive information within defined geographic and legal boundaries.

Enterprises that are looking to modernize their customer service and contact center offerings must ensure that vendors can deliver both exceptional performance and best-in-class adherence to data sovereignty.

NiCE Continues to Flex its Governmental Muscles

Although the deal with the DWP is significant, what it represents might prove to be more valuable in the long run.

Having secured one UK government contract, NiCE will undoubtedly have its eye on others.

Indeed, earlier this year, Her Majesty’s Revenue and Customs (HMRC) announced major plans to improve its customer service and experience offerings.

The government department that collects taxes and administers benefits confirmed that it had an eye-watering budget of $2BN – $670MN (£500MN) of which is earmarked for a CCaaS mega contract.

The contract was officially put up for tender at the end of May, with any interested CCaaS providers having until June 23rd to apply to join the tender process.

If NiCE was to bid for the contract, the fact that it has already secured a deal with a major UK department may well tip the scales in its favor.

Moreover, back in May, the vendor revealed that it had signed another agreement with a European government agency.

The $100MN deal to deploy its CXone Mpower platform across the agency’s customer service operation was described by NiCE CEO Scott Russell as one of the largest contact center contracts in the company’s history.

This marked NiCE’s second nine-figure government win in under a year.

In September of last year, the vendor completed a $578MN deal with Services Australia, the federal agency responsible for delivering social security, health, and welfare services to Australians, which operates the largest contact center in the southern hemisphere.

As NiCE continues to win more of these contracts, it is able to frame itself as an expert in governmental digital transformations.

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