Corporate report

Enterprise Customer Relationship Management Programme (ECRM): Summary Business Case

Published 30 October 2026

1. Strategic Case

1.1 Introduction

1.1.1 His Majesty’s Revenue and Customs (HMRC) has one of the largest customer service functions in the UK, servicing over 34 million citizens and 5 million businesses.  The ECRM programme aims to create a generational shift in the way HMRC supports its customers. The Programme will replace over 70 legacy customer management systems into a single ECRM platform, creating a strategic foundation for managing customer information and interactions, while strengthening digital infrastructure and improving resilience and integration of HMRC’s services.

1.1.2 The Programme is a foundational element of HMRC digital transformation and underpins delivery of the departments SR25 ambitions, providing a modern platform that enables improved customer experience, enhanced colleague productivity, better use of customer data and insight, and supports wider transformation programmes across HMRC. ECRM will improve the ability to use data and insight to support compliance, reduce duplication and create a stronger foundation for HMRC’s 2030 digital transformation ambitions.

1.1.3 ECRM represents a once-in-a-generation investment in HMRCs customer management it will directly support HMRC’s strategic objective of achieving 90% digital customer interactions by 2030. It will also enable HMRC to better understand customer behaviour through advanced analytics and support compliance activity by being more proactive and pre-emptive, through targeted communications including prompts, nudges and proactive compliance interventions.

1.1.4 The programme will also strengthen the security and resilience of HMRC’s technology estate by replacing ageing legacy systems with a modern, supported platform, reducing technical debt, improving service reliability, and enabling cost savings through technology consolidation and the retirement of legacy services.

1.1.5 Customers will receive seamless, consistent and secure support tailored to their circumstances and preferred channels. They will need to repeat information less often, while advisers will have the insight needed to resolve issues more quickly and effectively. Richer insight will enable HMRC to anticipate customer needs, provide timely prompts and interventions, help more customers get things right first time and contribute to closing the tax gap.

1.1.6 This is more than a technology replacement. ECRM will move HMRC from fragmented systems and transactional contacts to a modern, data-driven and personalised operating model — simplifying processes, enabling automation and AI, improving productivity, and supporting the transition from costly legacy platforms to scalable, evergreen cloud services.

1.2 Strategic Alignment

HMRC Strategic Objectives	ECRM Alignment
SO1: Close the Tax Gap	ECRM will strengthen HMRC’s ability to improve processes, join-up customer data and analytics to identify compliance risks, support upstream interventions and improve revenue protection.
SO2: Improve day-to-day performance and the overall customer experience	ECRM will enable HMRC to have a holistic view of customer interactions. Tailored guidance and education will help customers understand their obligations and support future compliance.
SO3: Reform and modernisation of the tax and customs administration	The Programme will modernise customer management capability through a cloud-based enterprise platform that supports more digital, automated and consistent services, while strengthening the security and resilience of HMRC’s technology estate through the adoption of modern, supported technology. It will also reduce technical debt and deliver long-term IT cost efficiencies through the consolidation and retirement of legacy systems and associated support costs.
SO4: Build a high-performing organisation with a skilled and engaged workforce	ECRM will provide HMRC colleagues with better tools, data and processes, supporting improved productivity, consistency and confidence in service delivery.
SO5: Support wider government economic aims through HMRC’s work	ECRM is a strategic enabler of HMRC’s contribution to the government’s growth agenda – supporting increased revenue collection, reduction in the tax gap, and modernise customer services. ECRM supports HMRC’s ambition to provide more personalised, efficient, and data-driven services to individuals and businesses, directly supporting HMRC’s strategic objective of achieving 90% digital customer interactions by 2030.

1.2.1 HMRC’s technology and transformation strategies emphasise modern, integrated, data-led services. ECRM supports this direction by consolidating customer relationship management capabilities onto a scalable Software as a Service platform and enabling stronger integration with related services, data sources and channels.

1.2.2 The Programme aims to create a generational improvement in customer service and compliance by delivering the following objectives: establish a single view of the customer; improve consistency and productivity for HMRC colleagues; enable proactive compliance through better data and analytics; and reduce reliance on fragmented legacy systems.

1.2.3 ECRM also aligns with wider government priorities for modern digital government, data-led public services and responsible use of artificial intelligence. By creating a single, enterprise-wide customer relationship management capability, the Programme will support more joined-up services, better use of data, improved productivity and a stronger foundation for future automation and AI-enabled insight. This is consistent with the cross-government direction to modernise public services, reduce reliance on fragmented legacy technology, improve the citizen experience and deliver better value for money for taxpayers.

1.3 Scope of the Programme

1.3.1 The ECRM Programme will procure and implement a cloud-based solution and associated delivery support. It will establish core CRM capabilities, integrate with priority customer services and data sources, and support early adoption through front-runner services such as current work to digitise Inheritance Tax.

1.3.2 To enable delivery, HMRC will procure a primary CRM platform provider, secure delivery and integration capability, establish internal intelligent client and product ownership functions, and develop a phased roadmap for wider adoption across HMRC services.

1.4 Dependencies

1.4.1 ECRM has wide-ranging dependencies and will work closely with related Customer Management programmes to support delivery of the first front-runner service, focused on transforming Inheritance Tax.

1.5 Assumptions

1.5.1 The current business case assumes a phased implementation from 2026 to 2027 onwards, with early capability delivered through priority front-runner services and further rollout informed by a detailed three-to-five-year roadmap. Cost, scope and benefits assumptions will be refined through procurement, mobilisation and future business case approval stages.

2. Economic Case

2.1 Shortlist of options considered

2.1.1 Option 1 — Do nothing: retain existing fragmented systems and renew expiring arrangements as required. This option was discounted on the basis that it would sustain inefficiencies, data silos and increasing legacy costs.

2.1.2 Option 2 — Build in-house: develop a bespoke HMRC customer management solution. This was discounted due to delivery complexity, cost and timescale risk.

2.1.3 Option 3 — Build in-house with a system integrator: use external delivery support to develop a bespoke solution. This was shortlisted but not recommended due to continuing risks around complexity, speed of delivery and long-term maintainability.

2.1.4 Option 4 — Best-of-breed integration: procure separate specialist products and integrate them. This was discounted due to high integration complexity and coordination risk.

2.1.5 Option 5 — Recommended: implement an enterprise CRM platform with flexible augmentation. This approach provides scalable core capability while allowing additional services and integrations to be added over time.

2.1.6 Option 6 — Wall-to-wall single vendor: procure all capabilities from one supplier. This was discounted due to reduced flexibility and increased dependency on a single supplier.

2.2 Appraisal method

2.2.1 The appraisal followed HM Treasury Green Book guidance, using a structured options analysis to assess how best to deliver enterprise CRM capability across HMRC.

2.2.2 Critical Success Factors (CSFs) have been applied to support robust option appraisal and alignment with HMRC’s strategic objectives. These CSFs ensure that options are assessed consistently against criteria including cost management user experience, delivery risk, and long-term sustainability:

2.2.2.1 CSF1: Strategic fit and business need — must meet our agreed Spending Objectives and Outcomes. Must align with HMRCs Strategic objectives. Must fully meet HMRC’s architectural, digital and financial accreditation strategies.

2.2.2.2 CSF 2: Potential value for money — must provide value for money.

2.2.2.3 CSF 3: Supplier capacity and capability - must be deliverable to HMRC timescales.

2.2.2.4 CSF 4: Potential affordability — must be affordable within SR allocations.

2.2.2.5 CSF 5: Potential achievability — must meet ministerial and legislative commitment dates.

2.2.3 Following this assessment, Option 5 was identified as the recommended option.

2.3 Costs and benefits of the recommended option

2.3.1 The selected option involves investment in CRM Software as a Service platform, implementation and transformation costs, with estimated whole lifecycle costs (15 years) in the range of c.£1.7bn to £4.4bn (incl. optimism bias and VAT), reflecting the scale, complexity, and delivery over 15 years. Spend will be committed incrementally, including built-in review mechanisms at key points across the lifecycle to ensure cost is controlled with regular re-assessments of VFM.

2.3.2 Costs remain indicative at this stage and include uncertainty factors such as optimism bias, VAT treatment, system integration, and future transformation activity, which will be refined at Full Business Case stage.

2.3.3 The indicative cost range is derived from a Should Cost Model undertaken in 2025 and is subject to further refinement as procurement activity progresses and cost assumptions are validated.

2.2.4 The main benefits of ECRM are Increased Yield and Efficiencies for HMRC of £815.1m (cumulatively over a 10-year period), through a unified customer contact platform that joins up customer data. In addition, there are projected cost savings of £924m-£1.25bn (over a 15-year contract length, with a 40% level of optimism bias applied (£650-880m excl. optimism bias and VAT)), generated through transitioning from legacy systems to a unified customer engagement domain.

2.2.5 At this stage these figures are subject to ongoing management of delivery risks and future reassessment

2.2.6 A significant proportion of the overall value enabled by ECRM will be realised through wider transformation activity rather than being directly attributed to the programme itself. ECRM provides the foundational customer management platform on which future services, processes and capabilities can be built. By establishing core capabilities such as a trusted customer record, customer interaction management digital communications and customer insight, other HMRC programmes will be able to deliver improved registration, compliance and digital services transformation.

2.2.7 Overall, the preferred option is assessed as offering the best balance of cost, risk, and long-term value, but the value for money position remains provisional pending further maturity of costs, benefits, and delivery assumptions.

3.Commercial Case

3.1 Procurement strategy

3.1 The Programme will use a multi-supplier commercial strategy aligned to the Government Sourcing and Construction Playbooks. The strategy will secure a long-term cloud-based CRM Software as a Service platform, supported by delivery, integration and business change capability.

3.2 The delivery model comprises HMRC as the client and intelligent customer, a CRM platform provider, system integration capability and business change support. This model is intended to provide specialist capability while ensuring HMRC retains strategic control of design, delivery and long-term product ownership.

3.3 The procurement approach will be delivered through two complementary components: (1) procurement of a core CRM Software as a Service platform, and (2) procurement of delivery and systems integration capability to support implementation, configuration and ongoing development. This separation is intended to maximise competition, ensure access to specialist capability, and maintain flexibility in delivery.

3.2. Commercial risk and allocation

3.2.1 The main commercial risks relate to procurement timescales, service performance and continuity, the risk of programme costs exceeding the approved funding envelope, effective exit and termination arrangements.

3.2.2 These risks will be managed through competition, clear contractual responsibilities, defined service level agreements, governance mechanisms, commercial controls and HMRC’s intelligent client function.

3.2.3 Robust contract and supplier management through an Intelligent Client Function, a specialised team, will provide ongoing oversight of performance, cost control, and risk mitigation throughout the lifetime of the contract.

3.3 Social value and sustainability commitments

3.3.1 Social value requirements will be aligned to the Government Social Value Model, ensuring that procurements contribute to wider public value outcomes, including economic recovery, skills and employment, environmental sustainability, and community wellbeing. These requirements will be embedded within evaluation criteria and contract management arrangements.

4.Financial Case

4.1 Funding and affordability

4.1.1 The Should Cost Model SCM provides the basis for an initial investment commitment of up to £272.6m through to December 2027 to procure and implement the ECRM platform and deliver the first phase of capability. Future rollout decisions and wider expenditure remain subject to separate business case approvals. This funding supports procurement of the platform, delivery of the first four use cases, and associated transformation activities. The ECRM Business Case notes the indicative whole lifecycle costs in the range of £1.7bn - £4.4bn (inclusive of VAT and OB) to deliver Option 5 (the preferred option) through the ECRM Programme, covering the period from 2025/26 to 2040/41. This represents the highest estimated cost, including optimism bias.

4.1.2 Expenditure will be committed incrementally, with future investment decisions subject to ongoing value for money assessments, assurance activity and business case approvals as the programme matures and delivery requirements become clearer.

4.1.3 Expenditure will be managed through HMRC’s established financial governance arrangements, with funding drawdown aligned to delivery milestones and subject to ongoing review at each approval gateway.

4.1.4 Key financial risks include cost increases arising from scope changes, programme delays and operational readiness requirements. These risks will be managed through established procurement controls, financial governance arrangements, change control processes and future business case approval gates.

5. Management Case

5.1 Delivery plan

5.1.1 The Programme will deliver ECRM through a phased approach covering procurement, mobilisation, platform set-up, integration, early capability delivery and wider rollout. Initial delivery will focus on establishing the platform, internal capability and priority front-runner services, followed by a structured roadmap for broader adoption across HMRC.

5.2 Key milestones

5.2.1 2026–2027: Procurement, mobilisation and early capability

• CRM platform contract award and mobilisation
• system integration and delivery partner arrangements established
• core platform environment, security controls and integration foundations developed
• initial front-runner services progressed, including digitisation of HMRC’s priority services
• 3 to 5 year roadmap developed to guide wider rollout
• further maturity and refinement of Programme benefits and design

5.2.2. Beyond 2027: Wider rollout and benefits realisation

• further phases will expand the use of ECRM across additional services, support decommissioning of legacy capability where appropriate, and progressively realise benefits through improved customer journeys, colleague productivity and compliance outcomes

5.3 Governance and oversight

5.3.1 The ECRM Programme is part of HMRC’s Customer Management Cluster (CMC), a group of programmes working to improve and modernise the way HMRC serves customers.

5.3.2 This approach reduces duplication, strengthens cross-programme decision-making, and ensures alignment across customer transformation activity.

5.3.3 The Programme is overseen through the ECRM Delivery Board, with escalation to the CMC Board, chaired by the Director General of Customer Services. The Programme is led by a Senior Responsible Owner (SRO).

5.3.4 Formal Government Major Projects Portfolio (GMPP) reporting commenced in 2025, and following changes introduced through Project Reset, the programme has remained within GMPP from 1 April 2026, ensuring continued external assurance and oversight.

5.4 Risk management

5.4.1 The Programme faces a number of key risks which are actively managed through formal governance and control processes:

• Foundational Delivery Timelines: There is a risk that the ECRM and technical components will not be delivered in time to support the agreed delivery dates for the leading services

• Benefits Realisation — we may not fully realise the benefits of implementing an Enterprise CRM due to unclear ownership, and business change across HMRC

• HMRC CRM Expertise Capability and Capacity — Delivery of the Programme requires significant levels of specific skills and capability over a sustained period; there is a risk of insufficient inhouse resource with the necessary skills and expertise to successfully undertake this scale of transformation

• Negotiation Timeline — There is a risk that the procurement timeline may be impacted due to negotiation timelines being extended, including unknown duration of impacting period

5.4.2 These risks are managed through structured risk management processes, regular governance review, and escalation through programme and cluster boards where required.

5.5 Evaluation plan

5.5.1 During delivery, progress will be evaluated through indicators covering procurement, mobilisation, platform readiness, integration, adoption and early service outcomes. Post-implementation evaluation will assess customer experience, colleague productivity, compliance outcomes, service stability, legacy reduction and value for money. Evaluation activity will be integrated into existing programme governance, assurance arrangements, published on the Government Evaluation Registry and refreshed as delivery, benefits evidence and evaluation requirements evolve.