UK taxman discovers low code doesn't mean low cost with £657M awards
Those legacy systems won't fix themselves
The UK tax authority, HM Revenue & Customs (HMRC), has awarded three contracts totaling up to £657 million for low-code software development and support, disproving the notion that empowering users with technology skills would result in lower costs. French consultancy Atos secured a £78.2 million contract, Lot 3 of HMRC's low-code procurement, which is part of the DALAS (Digital and Legacy Application Services) framework.
This contract covers programme oversight, supplier management, governance, assurance, and delivery support for HMRC's low-code technology estate. The DALAS framework, initially valued at up to £4.5 billion, includes support for technologies like Pega, ServiceNow, Microsoft Dynamics, and Power Platform. Cognizant and Coforge, two Indian tech services companies, also won contracts under the DALAS Lot 4a, worth £360 million and £219 million respectively.
Both contracts have the same initial term and extension options as the Atos contract. Legacy systems pose an ongoing challenge for HMRC, with the National Audit Office noting that remediation is taking longer and costing more than expected.
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