Kyndryl Holdings, Inc. has secured an $84.8 million contract to modernize the North Carolina Division of Motor Vehicles’ core motor‑vehicle systems, replacing legacy COBOL‑based platforms with a cloud‑native, Azure‑hosted environment designed to cut customer wait times and expand online services across the state.
The modernization effort will support the NCDMV’s broader digital transformation plan, which includes a mobile driver‑license application and renewal app, a digital wallet for payments, and improved staff onboarding tools. The new platform is expected to reduce average in‑person wait times from 110 minutes to 15 minutes and enable a broader range of services to be delivered online.
Kyndryl’s selection follows its successful modernization projects for the Arizona and Virginia DMVs, giving the agency confidence that the company can handle the complexity of a mission‑critical government system. The contract aligns with Kyndryl’s strategic focus on cloud migration, system modernization, and digital service delivery for public‑sector customers.
The contract’s net value is $79.8 million after a $5 million Microsoft credit, making it one of the largest public‑sector wins for Kyndryl in 2026. The deal comes shortly after the company reported a Q3 2026 earnings miss—EPS of $0.52 versus a consensus of $0.67 and revenue of $3.9 billion versus an expected $3.94 billion—highlighting the importance of new contracts for sustaining its financial trajectory.
"North Carolinians deserve a modern, efficient DMV that makes essential services easier and faster. I'm excited for the future of our agency with this partnership. This was the best deal for taxpayers, and I'm confident NCMAX will deliver a significantly better experience for both our customers and our dedicated staff," said Paul Tine, Commissioner of the NCDMV.
"Departments of motor vehicles provide essential services that people rely on every day, and the technology behind those services must be reliable and built to evolve. By applying our experience modernizing complex, mission‑critical environments, we are helping NCDMV build a more resilient foundation that improves everyday experiences and supports better service delivery for residents today and long into the future," said James Rutledge, President of Kyndryl U.S.
The contract not only strengthens Kyndryl’s public‑sector presence but also positions the company to capture additional government modernization opportunities as states pursue similar digital transformation initiatives. The partnership underscores the growing demand for cloud‑based, resilient infrastructure in the public sector and reinforces Kyndryl’s reputation as a trusted partner for mission‑critical upgrades.
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