HMRC signs £4.4m cloud migration deal with Kyndryl

The UK’s HM Revenue and Customs (HMRC) has signed a £4.4 million ($5.5 million) deal to prepare for its cloud migration.

The 15-month contract was signed with IT infrastructure services provider Kyndryl.

The company will manage some of HMRC’s mainframe services. Meanwhile, its consulting arm Kyndryl Consult will prepare HMRC for its digital transformation move to the cloud.

Microsoft and Advanced Computer Software Group will assist in the modernisation plan.

The deal is set to support HMRC in its aim of administering tax systems in the simplest and efficient customer-centric 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 John Chambers, President of Kyndryl for the United Kingdom and Ireland.

Kyndryl’s enterprise and zCloud practice will support HMRC’s existing mainframe infrastructure while plans are made to migrate applications to the cloud and eliminate technical debt.

The department is seeking efficient and low-risk paths to achieve this.

“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,” said Kyndryl in a press release.

The deal represents the first time HMRC has directly contracted Kyndryl through the G-Cloud framework. This framework enables UK public bodies to acquire cloud services from Government approved cloud providers.

HMRC’s broader transformation efforts, as outlined in its July IT strategy, included the key element of transitioning to the public cloud.

The strategy focused on the development of scalable digital platforms to enhance online tax services for both users and staff.

“We are leveraging cloud capabilities across our IT estate to improve agility, drive innovation and cost efficiency, and improve resilience, interoperability and security of our technology assets,” said HMRC in the strategy.

Kyndryl has previously served public sector clients alongside its association with IBM. This year, Kyndryl has signed deals with Legal & General, the UK Department for Environment, Food & Rural Affairs, and BT Group.

Kyndryl formed in 2021 when IBM spun off its legacy IT infrastructure business.

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