HM Revenue & Customs has selected Capgemini, NiCE and Route 101 to overhaul its customer service operations in a multi-year programme supporting services used by millions of UK taxpayers.
The overhaul centres on a shift to a more digital-first model, with HMRC aiming to consolidate older systems into a single cloud-based platform. The project is intended to expand self-service options, cut waiting times and make it easier for people to move between contact channels when seeking help.
HMRC is one of the UK's largest customer service organisations, handling enquiries from individuals and businesses across the tax system. Under the new arrangement, advisers will receive AI-assisted tools and real-time information designed to help them resolve queries more quickly and with fewer errors.
NiCE's CXone platform will sit at the centre of the overhaul and will be deployed in a UK sovereign cloud environment. Route 101 will provide professional services to implement the platform and NiCE Cognigy's AI tools, and will also supply telephony infrastructure through Gamma.
HMRC said the work would support more personalised and consistent interactions, with clearer information tailored to each customer's circumstances. Support will continue for people who are digitally excluded, in vulnerable situations or dealing with more complex issues.
System overhaul
The programme reflects a broader public sector effort to modernise large service operations that still rely on a patchwork of legacy technology. For HMRC, the challenge is particularly acute because of the scale of its contact volumes and the range of taxes, benefits and compliance issues it administers.
Bringing those systems onto one platform is expected to reshape both customer-facing services and internal workflows. Capgemini said its role would include implementation, system design, workflow integration, ongoing support and continuous optimisation.
The emphasis on a UK sovereign cloud underscores the importance of data residency and security in public-sector technology procurement. HMRC said the arrangement would help it modernise services while meeting strict compliance and data security requirements.
Partners' roles
Capgemini is the strategic partner for the transformation, with NiCE supplying the customer experience technology and Route 101 handling specialist delivery work. The structure suggests HMRC is combining a large integrator with software and telecoms specialists to manage a complex change programme.
Route 101's role includes the telephony layer, which remains critical to tax service operations despite the shift towards digital channels. Resilience of that infrastructure will be important if HMRC is to allow customers to move between digital self-service and adviser-led support without disruption.
The project also highlights the growing use of AI in frontline public services, although the practical focus here is on guidance, automation, and routing rather than on replacing human advisers. HMRC said staff would receive information at the point of contact to help resolve enquiries more effectively.
This matters because customer service at tax authorities often involves a mix of routine requests and more sensitive cases, where speed must be balanced with accuracy and fairness. HMRC said the new system would still allow targeted support for people who need extra help.
"We are honoured to be selected by HMRC as their strategic partner for this critical transformation program. This new agreement reflects the strength of our long-standing commitment to HMRC innovation and our ability to deliver complex, large-scale, AI-powered transformation programs that create tangible value for citizens. In collaboration with HMRC, NiCE and Route 101, we are building a value partnership that goes beyond technology delivery - one that is focused on long-term outcomes, innovation, and continuous improvement for millions of users across the UK," Rob Walker, Managing Director, Capgemini in the UK, said.
"HMRC serves every taxpayer in the United Kingdom, and the scale and importance of its contact center operations demand a platform built for enterprise-grade performance, security, and AI-led innovation. CXone is uniquely positioned to deliver on that mandate, helping HMRC modernise service delivery and raise the bar for citizen experience. In partnership with Capgemini and Route 101, this engagement demonstrates the strength of our partner strategy, combining deep expertise and leading technology to deliver meaningful outcomes at national scale," said Darren Rushworth, President, NiCE International.
"At the heart of this program is a commitment to better serve the public. By combining technology with human insight, we're helping HMRC create more seamless, accessible experiences that support people and businesses, and strengthen confidence in the services that underpin the UK economy," Fiona Virtue, Head of Public Sector, Route 101, said.