NiCE Part of a $670+ Million Megadeal to Transform HMRC’s Contact Center

HMRC has awarded Capgemini a £500 million (≈$679 million) contract to implement NiCE CXone and transform its contact center operations. 

While contracts are yet to be signed, the megadeal with the UK’s tax, payments, and customs authority will be the second major CCaaS win NiCE has secured in as many years with the British government.

Indeed, the CCaaS Gartner Magic Quadrant leader installed a 40,000-seat contact center with the Department for Work and Pensions (DWP) in 2025. 

NiCE is also putting together quite the hot streak of CCaaS wins in the public sector. 

Most notably, in November 2024, it was involved in a $578 million CCaaS transformation deal with Services Australia, a government agency that operates the largest contact center in the Southern Hemisphere. 

Yet, this win seems to be the biggest yet, coming in at £600 million after VAT (≈$814 million).

The news comes via a notice posted on the UK government’s website, which indicates the contract will last for eight years, from May 15, 2026, to May 14, 2034. There’s also the option for a two-year extension into 2026.

While there’s little more information given on the deal, the HMRC’s tender notice indicated that transformation would see the supplier and CCaaS provider (Capgemini and NiCE):

• “(Ensure) the provision of product licenses and future acquisition/development of associated add-on products.
• Service design, implementation, and configuration services.
• Run & support services, including proactive maintenance and testing.
• Ongoing optimisation of services with the potential for innovation and transformation.”

HMRC’s procurement of a new CCaaS platform followed a 2024 release from the UK National Audit Office, which concluded that taxpayers were being "let down by poor HMRC customer service". It also found the agency averaged a wait time of almost 23 minutes in the first 11 months of 2023-24 tax year. 

Now, Capgemini and NiCE will support the organization in turning the tide.

In doing so, they will work alongside HMRC’s new CRM provider, which is expected to be announced shortly. That contract is estimated to be valued at $2 billion (≈$2.7billion).

What Else Do We Know About the Megadeal?

An insider told CX Foundation in January that the decision had come down to a two-way shootout between NiCE and Genesys. Although the HMRC had received 13 tenders altogether. 

Despite the entrance of AWS, Microsoft, and (most recently) Salesforce into the CCaaS market, many enterprise procurements boil the field down to these two vendors. 

That’s somewhat evident in how NiCE and Genesys are the only two vendors to have surpassed $2 billion in annual recurring revenue (ARR) for CCaaS.  

While both providers boast deep platforms and extensive partner bases, a likely reason for this trend is that customer relationships are the lifeblood of a business and, therefore, organizations are less inclined to take a chance on a CCaaS software provider than with other technologies. 

As such, continued industry affirmation of both providers’ market leadership, from the likes of Gartner and Forrester, is seemingly more influential than in other markets. 

This is a breaking news story. More analysis will follow.