HMRC has awarded Salesforce a contract worth up to £2.4 billion including VAT to supply a software-as-a-service CRM platform and related services for at least ten years, with extensions potentially running to 2041. The deal covers customer records, case management, marketing campaigns, messaging, reporting, analytics, and AI, while third parties may supply identity verification, fraud detection, and data integration.
The procurement drew two final bids, with Salesforce beating Pegasystems. HMRC initially estimated the value at £1 billion during market engagement in April 2025, but the tender set a potential 15-year value at £2 billion excluding VAT. The new system is intended to integrate with updated customer service platforms, including a future contact-centre-as-a-service offering.
The award is part of a wider overhaul of HMRC's customer-facing technology. In April, Capgemini won a contact-centre contract worth up to £600 million including VAT. The changes follow years of criticism, including a Public Accounts Committee report accusing HMRC of deliberately degrading its phone service; callers collectively spent 798 years on hold during 2022-23.