HMRC moves to the cloud with Kyndryl

HMRC awards £4.4 million contract for major managed services and cloud transformation

Posted 11 September 2023 by Christine Horton

HMRC has selected managed services giant Kyndryl to help migrate its services to the cloud.

The deal will see Kyndryl continue to manage a proportion of HMRC’s mainframe services while Kyndryl Consult will undertake discovery work to prepare for cloud migration and modernisation.

With a significant mainframe estate, HMRC is looking for efficient and low-risk routes to migrate applications and eliminate technical debt. The new deal, worth £4.4 million over 15 months, represents the first time that HMRC has directly contracted Kyndryl through the G-Cloud framework.

 “Kyndryl is thrilled to sign its first direct contract with HMRC to support HMRC’s strategic aims of administering tax systems in the simplest, most customer-centric and efficient way. The agreement underpins our continued commitment and focus to support the UK’s public sector and to drive better outcomes for UK citizens,” said Kyndryl’s United Kingdom & Ireland President, John Chambers.

Kyndryl Consult will also draw on existing partnerships with Microsoft, and the Advanced Computer Software Group ‘Application Modernisation Practice’, to develop modernisation options for “powering HMRC’s operations into the coming decades.” 

A statement said the work will involve an embedded approach, with Kyndryl and HMRC staff working collaboratively towards chieving their outcomes.

It added: “Moving workloads into the public cloud enables public organisations to operate with the agility and efficiency expected of contemporary civil bodies, integrating more deeply with other public and private services and automating fundamental processes. As essential service providers, the public sector’s initiatives require careful planning to uphold continuity and achieve outcomes which represent good value for money to the taxpayer.”

Kyndryl said its Core Enterprise & zCloud practice provides can deliver “secure, compliant, and resilient” mainframe modernisation services through digital transformation, enabling consistent service and creating opportunities for cloud-like operating models.