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HMRC is planning over £2 billion in technology procurement over the next two years, with major contracts including a £410 million data warehouse transformation, £350 million for AWS cloud compute, and £306 million for digital platform services. The spending comes as the tax authority struggles to modernize legacy systems, including SAP Business Warehouse, with costs running higher than expected. Several large contracts, including ones for Capgemini and AWS, are being awarded without competitive bidding. The government allocated an additional £1.6 billion through 2028-29 to modernize HMRC's IT infrastructure after auditors found the agency hasn't achieved anticipated efficiencies from digital services.

HMRC lines up £2B tech spend on cloud and IT services