Stellar Omada lands HMRC testing deal worth GBP £10m

Stellar Omada has won a five-year HM Revenue & Customs contract for application testing services worth more than £10 million, a major public sector deal for the Edinburgh-based technology services firm.

The award covers HMRC Application Testing Services Lot 1 under the Crown Commercial Service Quality Assurance and Testing for IT Systems 2 framework (RM6148). Central government departments and other public sector bodies use RM6148 to buy specialist testing services.

The contract makes Stellar Omada a supplier for testing work linked to HMRC's digital systems that underpin tax and customs services, including large-scale online services used by citizens and businesses.

Testing scope

Under the Lot 1 award, Stellar Omada will provide end-to-end testing services, spanning planning, execution and assurance across programmes involving software releases, integrations and data flows between systems.

The company linked the work to HMRC's Making Tax Digital programme and efforts to improve user experience. HMRC has been moving more tax administration online in recent years, affecting individuals, employers and many small businesses.

Stellar Omada said its approach combines quality assurance methods with automation tools. Automation is widely used in software testing to run repeatable checks across frequent updates, often reducing the time needed for regression testing when new application versions are released.

Growth profile

Stellar Omada employs about 200 people across the UK and is headquartered in Edinburgh. It reported expanding its client base beyond Scotland and increasing service delivery across the UK.

The firm works across digital transformation, programme delivery, testing, large-scale migrations and managed services. It also sits within the Stellar Group, alongside tech training provider Stellar Elevate and recruitment firm Stellar Connect.

Stellar Omada features on Deloitte's Fast 500 EMEA list and holds places on public sector procurement frameworks including DOS-7 and G-Cloud 14, which public bodies use to source digital services and specialist suppliers.

Public sector competition

HMRC is a major buyer of technology and digital services in the UK, running large operational systems and customer-facing platforms with demanding requirements for security, reliability and service continuity.

Framework contracts such as RM6148 allow departments to procure testing services under pre-agreed terms and create competition among suppliers for places on lots aligned with their specialisms.

For Stellar Omada, the win adds a high-profile department to its public sector customer list and provides a multi-year revenue stream. The company also presents the deal as evidence of its ability to deliver in regulated environments, a factor that can carry weight when pitching to banks, insurers and pension providers.

It said it already provides services to many of the UK's leading banks, building societies and pension providers, working alongside in-house teams.

Investment backing

BGF invested £4.5 million in Stellar Omada in 2023. The UK and Ireland growth capital investor said the funding supported efforts to expand the company's footprint and client base.

Demand remains steady for skills linked to cloud migration, legacy modernisation, cyber security and delivery assurance, and funding has been flowing into UK technology services firms. Public sector buyers continue to procure services through frameworks as departments pursue modernisation programmes and work to improve digital service performance.

Founder and managing director Colin Frame described the contract as a milestone for the business and highlighted regulated delivery as a differentiator.

"Securing the HMRC ATS Lot 1 contract is a landmark achievement for Stellar Omada as we continue to grow at pace. It's a clear validation of the team's relentless focus on quality and our ability to deliver complex technical solutions at scale in highly regulated environments. We are thrilled to support HMRC in maintaining the integrity of the systems that help to power the UK's economy."

Work under RM6148 is expected to continue across government as departments plan further updates to citizen services and core platforms that require regular releases and ongoing testing.