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New £4.4m deal with HMRC for major managed services and cloud transformation

LONDON, September 7, 2023 — Kyndryl (NYSE: KD), the world’s largest IT infrastructure services provider, today announced a partnership through the end of September 2024. Drawing on Kyndryl’s market-leading position in managed services, the deal will see Kyndryl continue to manage a proportion of HMRC’s (His Majesty’s Revenue and Customs) mainframe services while Kyndryl Consult will undertake discovery work to prepare for cloud migration and modernization. Building on an existing relationship, Kyndryl will now continue to accelerate the organization’s journey to more agile and flexible operations in a modern IT architecture.

With a significant mainframe estate, HMRC is looking for efficient and low-risk routes to migrate applications and eliminate technical debt. The new deal, worth £4.4m over 15 months, represents the first time that HMRC has directly contracted Kyndryl through the G-Cloud framework.

Kyndryl Consult will also draw on existing partnerships with Microsoft, and the Advanced Computer Software Group ‘Application Modernization Practice,’ to develop modernization options for powering HMRC’s operations into the coming decades. As with all Kyndryl’s partnerships, this work will involve an embedded approach, with Kyndryl and HMRC staff working collaboratively toward an effective and successful set of outcomes.

Kyndryl will support HMRC’s Cloud journey. Moving workloads into the public cloud enables public organizations to operate with the agility and efficiency expected of contemporary civil bodies, integrating more deeply with other public and private services and automating fundamental processes. 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.

Kyndryl’s Core Enterprise & zCloud practice provides advanced technology and expertise to deliver secure, compliant and resilient mainframe modernization services through digital transformation journeys, enabling consistent service and creating opportunities for cloud-like operating models. Kyndryl’s established credentials in managing public sector workloads underpins a sensitive approach to modernizing, innovating and securing critical public infrastructure.

“Kyndryl is thrilled to sign its first direct contract with HMRC to support HMRC’s strategic aims of administering tax systems in the simplest, most customer-centric and efficient 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, Kyndryl United Kingdom & Ireland President.

About HMRC 
HMRC is the UK’s tax, payments and customs authority, and has a vital purpose: it collects the money that pays for the UK’s public services and helps families and individuals with targeted financial support. HMRC does this by being impartial and increasingly effective and efficient in its administration. 

About Kyndryl
Kyndryl (NYSE: KD) is the world’s largest IT infrastructure services provider serving thousands of enterprise customers in more than 60 countries. The company designs, builds, manages and modernizes the complex, mission-critical information systems that the world depends on every day. For more information, visit