HMRC eyes low-code transformation gains with £78m Atos deal

HM Revenue & Customs (HMRC) has announced a deal with Atos aimed at driving IT modernization with low-code solutions.

The three-year deal, worth more than £78 million, will see Atos act as lead partner for Low-Code Leadership and Configuration Services within the Digital and Legacy Application Services (DALAS) framework.

In a statement announcing the move, Atos said it will provide “technical and delivery governance and assurance across the entirety of HMRC’s low-code ecosystem”.

This includes supporting the tax office’s IT modernization efforts and improving digital services for workers, businesses, and citizens across the UK.

“We’re proud to be expanding our long-standing relationship with HMRC through this appointment,” said Michael Herron, Head of Atos UK&I.

“Our proven technical expertise and experience in public sector transformation makes Atos well-placed to support HMRC as it looks to deliver better digital experiences for citizens at pace.”

HMRC targets low-code gains

Low-code tools allow businesses to accelerate transformation efforts by simplifying application development and removing manual programming.

According to Atos, the deal with HMRC will allow the tax office to ramp up legacy IT modernization and deliver “faster time to value” and cost savings.

The new contract builds on long-standing ties between Atos and HMRC. The tax office awarded a multi-year contract to the firm in 2022 to provide application testing services, for example.

It also represents the latest in a string of modernization-related announcements by HMRC in recent months. As ITPro reported in June, HMRC signed a deal with Capgemini, NiCE, and Route 101 to overhaul customer service operations with cloud native and AI tools.

The contract will see legacy infrastructure and existing products consolidated within a unified cloud native platform, with development led by Capgemini.

That deal came hot on the heels of a £175 million contract with Quantexa to overhaul its core data infrastructure.

Low-code tools still alive and kicking

Low-code platforms have been a staple in enterprise digital transformation programs for more than a decade.

Despite the advent of generative AI and an influx of AI coding tools in recent years, research shows low-code and no-code solutions are still going strong.

Research from App Builder in April 2025 found these tools still play a key role in enterprise digital transformation efforts worldwide.

Around 95% of companies revealed they still use low-code tools in software development. Notably, more than three-quarters (76%) said AI is helping make existing tools more efficient.

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