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19 Aug 2026, 4:44 PMThe Register6.5 UK taxman discovers low code doesn't mean low cost with £657M awards

UK tax authority HMRC has awarded three low-code contracts worth up to £657 million to Atos (£78.2M), Cognizant (£360M), and Coforge (£219M) for build, configuration, DevOps, and support across Pega, ServiceNow, Microsoft Dynamics, and Power Platform. The awards come under the DALAS framework, whose Lot 4a was originally estimated at £700M and whose broader second phase was valued at £2.8 billion, as HMRC struggles with one of the UK's largest and most complex legacy IT estates.

Why: If you are pitching low-code as a cost-saver to clients or your own board, this is a concrete counterexample: a government with massive scale still needed £657M in specialist services just to build, configure, and maintain low-code platforms. Factor in ongoing vendor lock-in and consultancy costs when evaluating Pega, ServiceNow, or Power Platform versus custom builds—low-code shifts spend from developers to integrators, it doesn't eliminate it.

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