UK tax authority commits $677Mn to fix call center crisis
LONDON, UNITED KINGDOM — The UK’s tax authority, His Majesty’s Revenue & Customs (HMRC), is racing to replace its failing call center systems with a £500 million (US$ 677 million) Contact Center as a Service (CCaaS) solution.
Systemic collapse pushes HMRC’s $677Mn tech gamble
The performance of HMRC’s call centers has deteriorated significantly, with only 66.4% of calls answered in 2023-24, significantly below its 85% target, and wait times increasing to 23 minutes from just 5 minutes in 2018-2019.
The crisis has sparked accusations that HMRC is deliberately running down phone services to herd users online, a claim Chief Executive Officer (CEO) Jim Harra calls “completely baseless.”
“We will always be there to answer the phone for those who need extra help. At the same time, more than 80% of customers are satisfied with our digital services, with more and more people using them to quickly and easily manage their tax affairs,” said Harra.
The £500 million (US$ 675 million) CCaaS tender aims to deploy artificial intelligence (AI) routing, real-time queue updates, and omni-channel support to restore functionality.
Bidding looms as HMRC demands lasting fix
The decade-long contract, open until June 23, 2025, is a golden opportunity for various tech giants that specialize in cloud-based CCaaS platforms with AI-driven analytics and scalability.
A Contact Center as a Service (CCaaS) is a cloud-based solution that allows businesses to manage client communications through the cloud. With a CCaaS, companies only need to purchase a single software to manage the overall customer experience.
HMRC’s requirements include the following:
- Provision of product licenses and future acquisition/development of associated add-on products
- Service design, implementation and configuration services
- Run and support services, including proactive maintenance and testing
- Ongoing run and optimizing services for innovation and transformation
Public Accounts Committee (PAC) Chair Geoffrey Clifton-Brown warned HMRC is “excavating its way to new lows” annually, citing its sluggish digital transition.
With taxpayers like Jennifer Walker, a single parent, losing workdays to 3-hour call ordeals, the overhaul’s success hinges on delivering tangible improvements.
