HMRC picks Salesforce for £2.4B CRM overhaul

HMRC has awarded Salesforce a contract worth up to £2.4 billion including VAT to supply a SaaS CRM platform covering customer and case management, marketing, analytics and AI, beating rival bidder Pegasystems. The deal runs to at least September 2036, with extensions potentially taking it to 2041, and is designed to integrate with a separate £600 million Capgemini contact-centre-as-a-service contract.

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The award is one of the largest public-sector SaaS contracts in UK history and cements Salesforce as the incumbent CRM vendor across a major national tax authority for at least a decade. Losing bidder Pegasystems is shut out of a flagship government reference deal, weakening its competitive positioning in large public-sector CRM tenders. Capgemini benefits as the adjacent CCaaS integrator whose contract must interoperate with the new Salesforce platform, reinforcing its systems-integration role in UK government digital transformation. Third-party specialists in identity verification, fraud detection and data integration stand to gain subcontracting opportunities carved out of the core deal. The long contract horizon (to 2036, with options to 2041) creates durable, largely non-discretionary recurring revenue for Salesforce and sets a precedent that could influence other government agencies' CRM procurement decisions.